Iceberg Alternative Real Estate Fund has celebrated its second anniversary with a total return to investors of 35 per cent (GBP Feeder II) since inception and a volatility of less than
Iceberg Alternative Real Estate Fund has celebrated its second anniversary with a total return to investors of 35 per cent (GBP Feeder II) since inception and a volatility of less than seven per cent.
The return is in stark contrast to those on the IPD UK Monthly Index (-35 per cent) and the EPRA Index (-67 per cent) over the same period.
Iceberg, which is the first relative value real estate fund, employs strategies in indirect real estate investments including Reits, real estate index derivatives and bonds to deliver performance without taking positions on changes in the value of underlying real estate assets.
Iceberg is a joint venture between CB Richard Ellis and Reech AiM Group.
Stephen Ashworth, fund manager of Iceberg, says: ‘In launching Iceberg we were seeking to take advantage of the inherent structure of existing investment markets and their inefficiencies. We are delighted that the fund’s performance against a very testing background has justified the confidence that we, and our investors, have in alternative real estate investment. Perhaps most gratifying is the clear endorsement for non-correlated investment strategies from the difference in investment returns between Iceberg and European real estate equities over the last two years which now exceeds 100 per cent.’
Graham Barnes, investment strategist at Reech CBRE Alternative Real Estate, says: ‘Historically, investors have been able to access products which were, essentially, either real estate or capital markets products. Reech CBRE’s approach is to combine capital markets trading and risk management expertise with a deep understanding of real estate markets to deliver superior risk adjusted returns.’
