Global Real Estate Worldwide capabilities. Infinite possibilities.
This document is for investment professionals and/or qualified investors only. The content is not to be viewed by or used with retail investors. Our real estate team is based in six locations across the UK, Europe, North America and Asia Pacific. United Kingdom UK North America US Cover photograph: Alkotas Point,Investors Budapest,corporate Hungary brochure An introduction to Aviva Investors Aviva Europe France Germany Asia Pacific Australia Singapore
An introduction to 1 is a global asset manager. We manage over 249/ 280/$403 billion * on behalf of our clients, across equity, fixed income, real estate, money market and alternative strategies. We have more than 1,300 employees, including over 400 investment professionals. Our people are based in 16 countries across Europe, North America, the Middle East and Asia Pacific. We have over 400 investment experts specialising in virtually every asset class. Our clients include pension schemes, local authorities and government bodies as well as a range of financial institutions. Our parent, Aviva Plc, is one of the world s largest insurance groups, providing savings, investment and insurance services, looking after 50 million customers around the globe. * Source: as at 31 December 2009. Photograph: PaddingtonCentral, London, England
2 Powerful real estate credentials is the largest manager of UK real estate assets*, currently managing assets of over 20/ 23/$33 billion** from offices in London, Paris, Frankfurt, New York, Singapore and Melbourne. Our scale and strong market position provide a huge operational advantage and give us access to a wide range of investment opportunities. Our real estate team of over 170 includes more than 90 investment professionals. Our investment professionals have an average of over 15 years in the industry, which provides valuable experience in such a dynamic environment. Many members of the real estate team are active in representing and our clients on industry and government forums, helping us to influence regulation and shape industry best practice. Our professional judgement, which is backed-up by a repeatable investment process, combines with our scale and experience to achieve one aim: the delivery of strong performance for our clients. We manage a comprehensive range of products and services for clients in both direct and indirect real estate. *Source: Property Funds Research, published in Estates Gazette (issued November 2009. AUM data as at 30 June 2009, includes total JV assets). ** Source: as at 31 December 2009.
Award winners 3 UK Property winner 2010 The awards seek to recognise excellence of providers of products and services to UK occupational pensions schemes. IPD/IPF UK Property Investment Awards 2010 Specialist Pooled Funds and Traditional Estates (above 500m, Dec 09) Awarded to the Quercus Portfolio as the fund with the highest three-year annualised return including indirects (excluding years of portfolio set-up & portfolio sale). IPD/IPF UK Property Investment Awards 2009 Balanced Pooled & Traditional Funds ( 100-350m) Awarded to the Shareholders Fund as the fund with the highest three-year annualised return including indirects (excluding years of portfolio set-up & portfolio sale). European Property Manager of the Year 2008 Awarded for excellence and innovation in the market, commitment to clients and overall dedication to improving pension provision. IPD/EG UK Property Investment Awards 2008 Balanced Pooled & Traditional Funds ( 150-500m) Awarded to the Shareholders Fund as the fund with the highest three-year annualised return including indirects (excluding years of portfolio set-up & portfolio sale). Property Manager of the Year 2008 Based on innovation, communication, performance and benefits to clients and service standards. Photograph: Bermondsey Square, London, England
4 Client focus Our product and service range includes segregated direct accounts, pooled funds with both diversified and specialist strategies, real estate unit trusts and real estate securities funds. We aim to deliver innovative solutions across our product range by carefully considering the objectives, needs and risk profiles of our clients and tailoring our solutions to their requirements. Our client reporting can involve a combination of written reports, bespoke presentations and regular meetings. We constantly monitor the service that we provide to our clients and their advisers and review their feedback. Every year, we commission independent research to review our investment performance and service standards. In the UK, also provides Investment Tutor, an industry-leading tool dedicated to trustee investment education. Investment Tutor offers trustees, free of charge, access to a range of online training guides, news, topical articles, training events and a glossary of pension and investment terms. Investment professionals in the UK should visit www.investmenttutor. com for further information. Best Trustee Education Provider Winner 2008 Engaged Investor Trustee Awards 2008 Best Trustee Education Provider Highly Commended 2007 Engaged Investor Trustee Awards 2007
Our product and service range 5 Segregated fund management/ separate accounts Non-UCITS Retail Schemes UK institutional pooled funds High lease to value funds Specialists in Real Estate Fund Management UK specialist sector-focused funds Global multi-manager and fund of funds Infrastructure funds European funds Aviva life funds Real estate securities funds Secondary investing and recapitalisations Real estate derivatives Asia Pacific funds Photograph: Metzanine Retail Park, Metz, France
6 Established investment philosophy Investment process Market forecasts We have a robust, repeatable investment process, which can be summarised as follows: Client objectives Top-down Bottom-up Strategy review & portfolio risk analysis Stock selection Strategy outputs Initially, we clarify and input clients objectives, including benchmark, target and any existing holdings. The top-down element of the investment process is concentrated on economic, financial and real estate market fundamentals leading to return forecasts at regional, sector and market segment level. The bottom-up element of the strategy is centred on a property business plan for direct real estate holdings and detailed asset research and analysis including analysis of performance prospects, risks and associated costs. The strategy for each fund includes details of individual property decisions, portfolio strategy and key risks and how they will be managed. The strategies and their implementation are regularly reviewed through our real estate Investment Governance and Investment Transaction Committees.
7 Strategy and research The driving principle throughout the investment process is to ensure that the best use is made of our high quality expertise for all client funds, so that all decisions are founded on the best possible information. The process is continuous, aiming to achieve optimum timing on all investment decisions. A particular feature of our approach is the involvement of our dedicated real estate Strategy and Research Team, who work closely with the fund and asset managers throughout the investment process. Innovation has established itself as a market leader through constant innovation. We aim to ensure that clients are provided with products and services that meet their specific needs. Some highlights include: being the first to launch daily-priced open-ended retail investor funds in the UK, Europe and Asia Pacific; being one of the first fund managers to launch a global multi-manager service; and the launch of specialist sector funds including those in emerging sectors, with co investing asset management partners in the UK, Europe and Asia Pacific. Sustainability has a Sustainability Group within the real estate team whose members are all committed to ensuring that environmental, social and governance issues are taken account of throughout our business. We maintain strong links with the Sustainable and Responsible Investment and Corporate Governance teams. We also launched a regeneration fund in 2002, which invests in mixed-use urban regeneration projects in major towns and cities in the UK. The United Nations has referred to this fund as The world s first sustainable property fund. * *United Nations Environment Programme Finance Initiative Working Group Meeting, November 2006 Photograph: Jubilee Library, Brighton, England (Adjudged to be one of the 20 greenest buildings in Britain, Property Week, 27 June 2008)
8 Global reach and a local presence We have an approach to real estate investment that combines top-down, strategic thinking with a strong presence at the local level. UK Our UK team, based in London, manages a comprehensive range of funds on behalf of institutional and retail investors both in traditional sectors of the real estate market offices, retail and industrial properties as well as in emerging and specialist sectors, such as healthcare, student accommodation, retirement housing, residential and urban regeneration. In particular, the institutional market is covered by low-risk, high lease to value pooled pension funds, diversified or sector/ regionally focused funds, segregated separate account mandates and a multi-manager service. Continental Europe We are highly active in continental Europe, with a real estate presence in London, Frankfurt and Paris. We manage pan-european funds on behalf of retail and institutional investors. Institutional investors can also select from a range of funds with a geographical and/or sector focus. We also manage funds that invest in European real estate securities, including REITs.
9 Asia Pacific The Asia Pacific team is based in Singapore and Melbourne. The team manages assets invested in direct real estate securities and unlisted specialist funds. Over the coming years, the team s objective is to offer clients a range of Asia Pacific funds that is every bit as extensive as our highly-regarded UK and continental European offering. North America The team in North America is based in New York. With specific expertise in fund of funds and multi-manager services, the team invests in a range of indirect listed and unlisted real estate vehicles. More specifically, the team offers services in three areas: fund of funds, secondary investing and separate accounts. Global We offer a global multi-manager service via the real estate teams in London, New York and Singapore. This team creates segregated bespoke portfolios which reflect clients individual objectives with respect to risk and return, geography, sector allocations and cash flow requirements. The team also manages UK and European fund of funds options. We also manage funds that invest in global listed securities primarily REITs and have considerable experience in real estate derivatives and other synthetic approaches to real estate. Photograph: Science Park, Budapest, Hungary