LONDON, 25 March 2014 – The Osiris Property Fund (‘Osiris’), launched in 2003, continues to out-perform its benchmark1 on both a short and long term basis. The fund has produced total returns of 10.5% over one year, 6.5% p.a. over the last three years, 6.0% p.a. over five years and 4.8% p.a. over ten years. (against the benchmark1 return of 9.1%, 5.2%, 5.0% and 4.7% p.a. respectively).
Osiris is operated by CBRE Global Multi Manager (“CBRE GMM”), the multi manager division of CBRE Global Investors, which manages portfolios of indirect real estate investments globally and regionally through separate accounts and pooled fund of funds. CBRE GMM has $12.2 billion of assets under management as at 31 December 2013.
The strength of Osiris’s performance underlines the effectiveness of the multi-manager approach and independent research supports this. CBRE GMM commissioned Property Funds Research (“PFR”) to quantify the expected return and risk of a single balanced fund compared to a multi manager proposition. Under the guidance of Cambridge Land Economy Professors Andrew Baum and Colin Lizieri, PFR studied 10 years of fund return data in the UK and calculated the returns and tracking errors of individual balanced funds and randomly stimulated multi manager portfolios.
The research showed that the skilled multi manager approach can offer a superior investment solution to a single fund approach; delivering higher returns for a lower expected tracking error. The Osiris performance track record demonstrates how this has worked in practice.
Alex Bignell, Head of UK, CBRE GMM: “The consistently strong risk–adjusted relative returns generated by Osiris illustrate the strength of the multi manager approach and the ability of an actively managed, well positioned indirect fund portfolio to out-perform the All Balanced Property Fund Index.”
Andrew Baum, Cambridge Land Economy Professor: “The research conducted by PFR shows that the multi manager approach provides better downside protection than a single balanced fund without having to compromise performance on the upside. A single balanced fund carries a high tail risk while a skilled multi manager should be able to add return through stock selection and accretive trading activity at the same time as keeping tracking error low.”
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1 The Osiris Property Fund benchmark is a composite of AREF/IPD UK QPFI All Property Fund Index until 30th June 2006; thereafter AREF/IPD UK QPFI All Balanced Property Fund Index. Osiris Property Fund returns shown are NAV to NAV gross of Osiris fee. Returns for 3, 5 and 10 years are annualised. Current quarter’s income assumed to be the same as previous; returns cannot be compounded as they are subject to change.
Past performance is no guarantee of future returns.
About CBRE Global Multi Manager
CBRE Global Multi Manager (“GMM”) is the independent multi manager division of CBRE Global Investors. GMM has $12.2bn in assets under management as of December 31, 2013, invested in primary funds, club deals, secondaries, joint ventures and co-investments.
About CBRE Global Investors:
CBRE Global Investors is a global real estate investment management firm with $89.1 billion in assets under management* as of December 31 2013. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG), and harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services company for the benefit of its investors. CBRE has more than 44,000 employees (excluding affiliates) in more than 350 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
*Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.