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Global Real Estate Fund
Contents
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Introduction to the Global Real Estate Fund
Why invest in the Global Real Estate Fund?
What does the Global Real Estate Fund invest in?
Where in the world?
Who is the Global Real Estate Fund suitable for?
Important risks to consider
Why choose Standard Life?
About Standard Life Investments
Standard Life Global Real
Estate Fund
Commercial real estate can be an attractive investment opportunity
given its stable income return, the potential for capital growth over
the long term, in addition to the valuable diversification benefits it
can offer. However, for most people it's a difficult area to invest in.
The Standard Life Global Real Estate Fund offers a unique
opportunity to invest in global commercial property markets.
It invests in direct property, actual ‘bricks and mortar’ and also
invests indirectly through listed real estate, Real Estate Investment
Trusts (REITs) and other real estate investment funds. It aims to
provide you with long-term growth through a combination of
income and capital appreciation.
Warning: If you invest in this fund you may lose some or all of the
money you invest.
Warning: The value of your investment may go down as well as up.
Warning: This investment may be affected by changes in currency
exchange rates.
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Why invest in the
Global Real Estate
Fund?
Investing in a broad range of global real estate opportunities
helps towards achieving a well-diversified portfolio while also
maximising the potential for growing your investment.
1
Global opportunities
2
Diversification
3
Investment flexibility
4
Stable income
5
Capital appreciation
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The fund invests in a wide range of sectors and assets in many
countries and provides for the flexibility to choose the best return
opportunities at any given time.
The fund uses both direct and indirect global real estate investments
which can provide for increased diversification and help reduce risk.
The fund doesn’t have a specific split between direct and indirect
investments. The split will change based on market conditions,
which means the fund will always aim for the best possible return
for your investment.
Commercial property can offer a stable rental income from
financially secure long-term tenants that occupy the buildings the
fund holds.
Direct property assets can appreciate in value over time, providing
the potential for capital growth.
Global
Real Estate Fund
Enhanced-Diversification
What does the Global Real
Estate Fund invest in?
Direct real estate
A tangible asset often referred to as ‘bricks and mortar’. It allows
access to properties that many investors couldn’t afford on their
own. It also provides income in the form of rent. This fund can
invest in commercial property including offices, retail outlets and
industrial buildings.
Listed real estate - property shares
This is shares in real estate companies that own, manage and
develop properties. These are more liquid than direct real estate
as they can be traded on a daily basis.
Real estate investment trusts (REIT)
A REIT is an investment trust that invests in property and is traded
on the stock market. They operate in a tax efficient structure and
most of the rental income they generate must be passed directly
to investors.
Real estate investment funds
The fund can also invest in other real estate investment funds to
gain access to other countries and sectors.
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Where in the world?
The Hague
Edinburrg
gh
Calgary
Dublin
Dublin
Lond
L
London
ndon
nd
on
on
Paris
Boston
Fra
ran
an
a
nkf
kffu
urrt
u
urt
St Helier
Barcelona
Countries where the fund holds assets
Standard Life Investments office
Source: Standard Life Investments, 28 February 2017
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Global Real Estate Fund
Poland
Seoul
Beijing
Czech
Republic
Hong
o g Kong
Singa
apore
p
pore
Tokyo
Sydney
Perth
Melbourne
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Who is Global Real Estate
suitable for?
It’s important to understand what you’re investing in.
We’ve given some points below to help you decide if the
Global Real Estate Fund is right for you.
You should consider Global Real Estate if you
¬are looking for the opportunity to achieve a total return
combining income with the potential for some capital
appreciation over the longer term
¬wish to invest in direct real estate, real estate related equities
and cash and indirect real estate including real estate related
equities, real estate investment trusts (REITs) real estate
investment funds and cash
¬have an investment time horizon of at least five years.
Global Real Estate may not be suitable if you
¬do not want to take any risk with your capital
¬are not prepared to accept periods of losses due to the volatile
nature of markets
¬are not willing to accept the possibility of fluctuations in the
level of income generated within the fund.
Switching your funds, transferring or cashing in
You may be one of many investors in this fund. Sometimes, in
exceptional circumstances, we may wait before we carry out your
request to switch funds, transfer or cash in your policy. This
delay could be for up to a month. But, the delay could be up to
12 months because property and land can take longer to sell.
We may also change the pricing basis of a fund to reflect cash flows
in and out. These are processes which aim to maintain fairness
between those remaining invested and those leaving a fund.
If we have to delay switching, transferring or cashing in, we’ll
use the fund prices on the day the transaction takes place these prices could be very different from the prices on the day
you made the request.
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Global Real Estate Fund
Important risks to
consider
You should also be aware of the following risk factors:
(a) Commercial property is less liquid than other asset classes
such as bonds or equities. Selling property can be a lengthy
process so you should be aware that you may not be able to
sell your investment when you want to.
(b) Commercial property transaction charges are higher than those
which apply in other asset classes. A high volume of
transactions would have a material impact on fund returns.
(c) Property valuation is a matter of judgement by an independent
valuer and is therefore a matter of the valuer's opinion rather
than fact.
(d) The fund invests in equities and equity related securities. These
are sensitive to variations in the stock markets which can be
volatile and change substantially in short periods of time.
(e) Dividend payment policies of the REITs in which the fund
invests are not representative of the dividend payment
policy of the fund.
(f) The fund may invest in emerging market equities and/or
bonds. Investing in emerging markets involves a greater risk
of loss than investing in more developed markets due to,
among other factors, greater political, tax, economic, foreign
exchange, liquidity and regulatory risks.
(g) Investing in derivatives carries the risk of reduced liquidity,
substantial loss and increased volatility in adverse market
conditions, such as a failure amongst market participants.
The use of derivatives may result in the fund being leveraged
(where economic exposure and thus the potential for loss by
the fund exceeds the amount it has invested) and in these
market conditions the effect of leverage will be to magnify
losses. The fund does not make extensive use of derivatives.
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Why choose
Standard Life?
Standard Life is a leading long-term savings and
investments company.
Headquartered in Edinburgh and operating
internationally, we've been in Ireland since 1834
and have been helping generations of Irish
customers plan for their future.
Your policy is protected
Standard Life in Ireland operates as a branch of our
UK parent company. This means that any policies
taken out since 1 December 2001 are covered by
the UK’s Financial Services Compensation Scheme
(FSCS) in the event that Standard Life is in default.
So if you invest in a Standard Life pension or
investment policy, 100% of the claim is covered,
with no upper limit.
There is no equivalent Irish compensation scheme.
For information on FSCS cover, see Your policy is
protected (FSCSFAQ).
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About
Standard Life Investments
Strong and market
leading
Standard Life Investments is a
leading asset manager, who
manage €325.6 billion* on
behalf of clients worldwide.
Talented people
At the heart of their success is
over 1,700* investment
professionals and support staff
working for them around the
world. They spend a lot of time
and energy recruiting and
keeping the best and most
talented people.
* As at 31 December 2016
Taking care of your money
They thoroughly research and
analyse each investment idea
before they add it to any of our
funds. They use their own tried
and tested methods to do this.
Their aim is to constantly look
ahead to anticipate change, so
that they can deliver the best
rewards for our investors.
Global reach
Their headquarters are in
Edinburgh and they have offices
in Boston, Hong Kong, London,
Beijing, Sydney, Dublin, Paris
and Seoul. They also have close
links with leading investment
companies in India and Japan.
A decision to invest should not
be based on the information
within this document. Please talk
to your financial adviser for more
information, or if you need an
explanation of the terms used.
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Pensions
Savings
Investments
Find out more
Talk to your financial adviser they’ll give you the information you need.
Also, you can call us or visit our website
(01) 639 7000
Mon-Fri, 9am to 5pm. Call may be monitored and/or recorded to protect
both you and us and help with our training. Call charges will vary.
www.standardlife.ie
facebook.com/StandardLifeIreland
youtube.com/StandardLifeIreland
Standard Life Assurance Limited is authorised by the Prudential Regulation Authority in the UK and is
regulated by the Central Bank of Ireland for conduct of business rules. Standard Life Assurance Limited
is registered in Dublin, Ireland (905495) at 90 St Stephen’s Green, Dublin 2 and Edinburgh, Scotland
(SC286833) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH.
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