What's New In Investments, Funds? - MSCI, Alpha Real Capital

Editorial Staff

26 November 2019

MSCI
MSCI ESG Research, part of the investment benchmark organisation , the specialist manager of long income real assets, has launched the European Long Income Fund (ELIF). The fund will target euro-denominated, asset backed, secure inflation-linked income streams by investing in commercial ground rents, amortising income strips and long lease property. The fund's primary focus on ground rents and income strips is intended to place ELIF at the lower end of the risk spectrum, offering a key differentiator to other long income property funds.

The fund mainly concentrates on real estate investment opportunities in the eurozone with an initial focus on Germany, the Netherlands and Ireland. ELIF is a Luxembourg-domiciled fund open to institutional investors.

Building on a track record in the UK, where Alpha has deployed in excess of €2.9 billion in long income property for pension funds and other investors, the fund has secured a major investment from Willis Towers Watson’s European Secure Income Fund. It has also brought in interest from European pensions funds and insurers.

“With nominal yields in northern Europe forecast to be close to zero or negative for the long term, we believe that secure income derived from long income property is an increasingly attractive asset class for European pension funds and insurers," Hugo James, partner and head of Long Income, said.