Why is the panacea for investors have found in western pension funds and what they should learn
Private investors is not easy to determine in which
country and in what format of real estate they invest. There is an opinion that the benchmark should be kept to foreign pension
funds and invest in the same property as they are. Why?
It is believed that they have a very strong investment analysts do not
allowing funds to burn through even in the most critical situations. There are reasons to believe?
The main reason for confidence in the funds, according to experts – is the giant their experience. According to managing real estate investments, the founder of the consulting portal Indriksons.ru Igor Indriksons,
funds buy all the available intelligence, and, by definition, know much
more private investors. “Normal a private investor is not able to
analyzed at the level of experts of the best business schools in the world. Also
agents can not “dissolve” the funds for the purchase of illiquid real estate, and
a private investor may well. Salaries and bonuses of top management
funds are directly dependent on how much will be successful in the investment
this or that object “, – explains the expert. In other words, employees
Fund appears weighty motivation for the study of the market. More
of funds, mainly adhere to the traditional, conservative strategy, and
therefore, the most sensibly assess investment risks.
According to the specialist in the real estate GDN Property Nelly Moiseenko,
policy of pension funds, both public and commercial,
It aimed primarily at preserving capital. Often
return on investment is just over indicators
inflation. Legislation of each country clearly states what
tools can use the funds for investing, but in any
if a large share always takes the most conservative tool –
“For private investors, indicators of economic situation in the country,
definitely is one of the major investments when a foreign
property, but for the successful investments should also be considered and a number of
other indicators: the analyst of real estate market over the past 15 – 20
years, indicators of construction, credit, and not only “, – He speaks
According to Igor Indriksons need to look not only where
pension funds and large real estate funds invest their money,
but in which Property format they invested.
“A private investor
emotional and more drawn to the property by the sea or to the luxury
apartments, while the funds no matter what to buy: hostel
a block of flats or parking – fund are concerned only potential risks and
yield, no emotion “, – He explains the expert.
For example, he said, the US funds are buying apartments from 50 thousand. Up
350 thousand. Dollars, and not at all expensive real estate in Manhattan.
successful funds mainly invest in commercial and
not residential property. At the same time investments are made in
highly facilities, the management of which (especially in Europe)
entrusted to a special management companies. The total percentage of investments in
property does not exceed for European pension funds 10 – 15%
available funds. In the USA, this value is even smaller – 5% “, – says the president of the International real estate agency Gordon Rock Stanislav Zingel.
Major acquisitions Western PF made on the Russian real estate market, however, mainly in the commercial segment. Thus, the Austrian pension fund Immoeast
acquired two shopping centers in Moscow. We are talking about “The Golden sites
Babylon “and” Fifth Avenue. ” Another Austrian Meinl pension fund
European Land invested in part of the areas of trade and entertainment centers
“Park House” in Volgograd, Yekaterinburg and Kazan. In turn, in its
time controlled CDP Canadian pension fund investment
“Seasons» Ivanhoe Cambridge fund has bought a shopping center in Moscow.
Western funds provide a good example, but not so simple. According to Stanislav
Singel, one can hardly say that all investments are correct PF, as their investment strategies
derivative are two components:
– National legislation,
regulating the activities of pension funds in order to maintain
– The desire of management control
“If the first component is not sufficiently developed, it is often pension
funds invest in highly risky assets and contribute to the development
speculative trends, including the housing market. But, on the contrary,
when unnecessary overregulation retirement savings legislation
inflation eats and real estate markets do not receive the life-giving
investment “, – said the expert.
According to him, in those countries where the wisdom of legislators harmoniously
combined with the “greed” of management, pension funds operate
most successfully. That is, it all depends on a specific country and
pension fund. The recent crisis has shown how successful and
sad stories of the investment of pension funds.
For example, Global Norwegian pension fund carried
investments in the US mortgage securities, thereby actually trusting
funds of the investors of the residential real estate market of the country.
Came the crisis has shown the fallacy of this strategy. After all, this segment hardest hit during the crisis. Not by chance
Only in 2009, Global lost 90 billion dollars.
“Against this backdrop, US pension funds, after huge losses in the 90’s
the last century, very carefully invested in the sector
commercial property – only in highly liquid objects. Therefore,
As of 2008, the period of the global financial crisis,
commercial properties 200 bln, or only 5% has been invested 4
trillion dollars under management of funds. nagryanuvshaya crisis
He demonstrated that it was the high liquidity of commercial real estate
the major financial centers are best endured the crisis “, – He speaks
Thus, the loss of funds from
investments in offices and shopping centers were minimal, however, it is not
save funds generally from losses. Summed other investment
tools – only the first 15 months of the crisis funds lost 20%
According to the chief economist UK “Finam Management” Aleksandra Osina,
making decisions based on the data of pension funds are very risky.
“The funds come on the market, when they see a trend, but the creation of such a trend
It takes the market, based on the assessment of a fund, on several
months to a few blocks, depending on the conservatism
assessments. Accordingly, at a time when the market is often short-term changes
direction, funds can either do not have time to buy, as it is now
It is happening in the stock market, or buy a “late” as has happened in
early 2011. “, – said the expert.
According to him, focus on funds may be relevant for the period
low risk when observed credit and consumption boom in the economy,
but now the economy is rebuilt, and the private investor must be carried out
a deeper analysis of their investments. Not necessarily the results of this
analysis will be different from the statistics, which offers
monitoring of funds, but by itself statistics action is now funds
From this point of view is not enough.
According to the director of “Miel – DPM» Natalia Zavalishin,
the question in this case lies in the fact that foreign pension
Funds have significant assets that they can be placed on
“When it comes to private investment, then, as a rule,
individuals or small entities have other
budgets and are unlikely to repeat the entry in some markets at the same
conditions. A change in the timing and size of investment is unlikely to
reach the same profitability “, – she explains.
What to do?
The main drawback in building an investment strategy
eye on the pension funds can be considered as a lack of information about their
activity. Says Stanislav Zingel, detailed information about
investment activities of pension funds can be found,
for example, in the catalog Money Market Directory of Pension Funds and
their Investment Managers, now as 40 years to publish Agency
Standard Poor’s. The cost of this tome, annually
2 sent out to thousands of leading financiers in the world, is about
$ 1,500. you can get fragmentary information on this area and
at a number of sites, disseminate knowledge on
free, but more often a fee.
“To find out information through the Internet sites of the largest real estate funds –
these websites publish analytics to investors every quarter. This intelligence can be trusted to 100%, as it is final.
In turn, their plans, such funds do not disclose “, – says
According to Alexander Osin, can be carried out independently
study, which funds are invested in real estate, then look
their current positions. However, data in use will be free
keep up the present time more than a few weeks or
months, it is necessary to subscribe for more recent information on
official mailing, for instance, Reuter, DowJones, Bloomberg, etc., or rely on their own strength.
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