The co-founder of Forum Partners said Australia was “probably as far advanced as anyone” in addressing the problem.The Australian model of Super funds is largely DC and active in both the real estate and infrastructure market.Platt said there were ways of tackling the problems that stemmed from requirements to revalue property holdings on a daily basis, and also that the use of real estate securities could offer ways of allowing for limited liquidity required by some DC investors.“The Australians have come to a very common-sense view,” he added. “Even if we have to allow for daily liquidity and portfolio changes among our underlying superannuants, not everyone is going to move from one side of the ship to the other at the same time.”He said many investors would instead take on a limited amount of implied liquidity and either create an internal trading market or invest instead in real estate securities.“That kind of approach, certainly from the largest players in the industry, is what we will see adopted more broadly,” he said.“Australians view real estate securities not as an add-on or the icing on the cake, which is typical of perhaps Americans and Western Europeans, where REITs aren’t as entrenched. Rather they view it as the foundation of a real estate portfolio.“The world is probably going to move more in that direction, and in that sense, again, Europe is playing catch-up.“Finding ways to crack this, there is not going to be any single solution, but a series of product innovations. It’s probably the most exciting edge of the real estate industry, as far as I’m concerned, finding ways to deliver liquid alternatives.”Property holdings by DC fund are not unheard of outside of the UK, and the National Employment Savings Trust has considered the use of REITs as a way of providing it access to the real estate market – both domestically and globally. The property industry is only just beginning to consider how defined contribution (DC) funds could invest in real estate, but must find ways to deliver liquid alternatives, according to the chief executive of Forum Partners.Russell Platt said the innovation needed to allow for such investments would be exciting, but that Europe was “playing catch-up” compared with the more advanced Australian superannuation market.Speaking at a La Française Asset Management event – less than a year after Forum and the French manager agreed a strategic partnership that saw La Française acquire a 24.9% stake – Platt identified the shift from defined benefit pension funds to DC as one of the biggest challenges facing his industry.“People now are just beginning to turn their attention to it, and it’s not easy – particularly if you want to provide lower-volatility direct real estate and equity assets into a defined contribution plan,” he said.
RelatedPosts Saraki to Kwara Governor: Call those encroaching my land led by your SA to order FG hails Kwara Governor over social investment programme No timetable yet for Anambra FA elections — Caretaker Committee The Federal Ministry of Youths and Sports Development has secured scholarship for two athletes from Anambra State, who were discovered at the last National Youth Games in Ilorin, Kwara State. Kola Daniel, Special Assistant (Media) to the Minister of Youths and Sports Development, Sunday Dare, disclosed this on Thursday in Abuja. Daniel said the development was a result of the resolve by the Minister to unearth hidden sports talents across the country. He said this was in order to grow and nurture them to take over from the older ones at the right time. He said: “The scholarship is a dividend of the Memorandum of Understanding signed between the ministry and the Nigerian Tulip International Colleges in October 2019. “The MoU is worth N2.6 million and will ensure some of the athletes discovered at the Games are able to further their education while still engaging in sports.” Daniel explained that the athletes were picked from the Anambra State contingent at the 2019 NYG. “Four out of the 20 athletes nominated for the scholarship programme from Anambra, in company of their coach, Akachukwu Igwebuike, a two-time gold medalist in javelin at the international level, were put through physical and practical trials, as well as oral screening,” Daniel said. He said it was from this group that Dike Mmaduabuchi (long jump/high jump) and Gabriel Chidera (shot put/discus) have now secured scholarship to the NTIC. Daniel added: “It is worthy of note that during the course of the screening programme, over 240 footballers were also nominated for the scholarship. “Three footballers of Anambra descent made the final list of which the captain of Team Anambra at the 5th NYG, Okafor Anthony, was among the lucky recipients.”Tags: Anambra StateFederal Ministry of Youths and Sports DevelopmentIlorinKwara State