IMA WELCOMES EUROPEAN PASSPORT FOR RETAIL REAL ESTATE FUNDS

Responding to the European Commission Expert Group's report on open ended real estate funds (OEREFs), the Investment Management Association (IMA) welcomes proposals for the creation of a European passport for retail OEREFs, but calls for caution on proposals to include the European passport within the already established UCITS framework, which has become the global gold standard for liquid and well diversified investment funds.

Commenting, Jarkko Syyrila, Head of International Affairs at IMA said:

" Many Member States, including the UK, have domestic retail real estate funds which have, over the years, proved to add value and offer diversification to retail investors' portfolios.  It is therefore worthwhile extending single market provisions on investment funds to real estate funds.  The illiquid nature of these funds, however, means that they significantly differ from existing UCITS funds.  It is therefore essential to further assess the proposals in order to find the best way of achieving a European passport for real estate funds."

IMA also strongly supports the Commission's on-going work to create a pan-European private placement regime as another important step in creating a cross-border market for real estate funds in the institutional market.

-ENDS-

Notes to Editors

1. About the Expert Group for European open ended real estate funds (OEREF)

The expert group has been established to advise the European Commission on OEREFs. Several stakeholders have cited the lack of EU passport for OEREFs as an unjustified obstacle to the evolution of this market.

2. About the Expert Group Report

The purpose of the report is to look at the following issues:

• The risk and performance characteristics of open ended real estate funds;
• The scale and scope of the perceived benefit for the industry and for investors of introducing an EU wide pass-porting mechanism for open ended real estate funds; and
• Cost effective options and solutions for an enabling Single Market framework for cross border marketing or management of open ended real estate funds.

The full report can be viewed here

3. About Investment Management Association (IMA)

The IMA is the trade body for the UK's Ł3,100 billion asset management industry.  The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.  Its role is to represent the industry and promote high standards

For further information, please contact:
Noreen Shah, Press Officer, IMA, 020 7831 0898            

Out of hours:
Mona Patel, Head of Communications, IMA, 07834 089 332