European property is offering a safe haven to investors facing up to negative bond yields, said Alban Lhonneur, manager of the F&C Real Estate Securities fund.
Negative bond yields have become a common sight across the continent this year as the European Central Bank's quantitative easing programme pushes prices up further. Even German 10-year debt is now yielding less than 0.1%. That follows German 5-year government debt selling at a negative yield of 0.08% for the first time ever. Debt issued by Austria, the Netherlands and Finland is also yielding below zero. Investors have been forced to increase risk in response, according to Lhonneur. "European property has become a popular asset class as people move up the risk curve," he said. ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
