confidential and proprietary 20 th june 2012 global multi manager london borough of newham...
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CONFIDENTIAL AND PROPRIETARY
20th
June 2012
GLOBAL MULTI MANAGER
London Borough of Newham
Superannuation Fund
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 3
IMPORTANT NOTICE
CBRE Global Multi Manager (GMM) is a trading name of CBRE Global Collective Investors UK Limited which is authorised and regulated by the Financial Services Authority.
The information contained herein must be treated in a confidential manner and may not be reproduced, used or disclosed, in whole or in part, without the prior written consent of CBRE Global Collective Investors UK Limited.
Past or projected performance is not necessarily indicative of future results. There can be no assurance that the mandate will achieve comparable results, that targeted returns, diversification or asset allocations will be met or that the investment strategy and investment approach will be able to be implemented or that the mandate will achieve its investment objective. Actual returns on unrealized investments will depend on, among other factors, future operating results, the value of the underlying assets and market conditions at the time of disposition, foreign exchange gains or losses which may have a separate and uncorrelated effect, legal and contractual restrictions on transfer that may limit liquidity, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which the valuations used in the prior performance data contained herein are based. Accordingly, actual returns may differ materially from the returns indicated herein.
The value of any tax benefits described herein depends on your individual circumstances. Tax rules may change in the future.
Statements contained in this Presentation that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of GMM. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Actual events or results or the actual performance of the mandate may differ materially from those reflected or contemplated in such forward-looking statements.
Certain economic and market information contained herein has been obtained from published sources prepared by third parties and in certain cases has not been updated. Neither GMM nor any CBRE Group Inc company its respective affiliates nor any of their respective employees or agents (collectively, “CBRE”) assume any responsibility for the accuracy or completeness of such information.
Whilst GMM believes that the information contained herein is accurate at the date hereof (or at the date shown in the document), neither GMM nor CBRE makes any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of any of the information contained herein (including but not limited to information obtained from third parties), and they expressly disclaim any responsibility or liability therefore. CBRE does not have any responsibility to update or correct any of the information provided in this Presentation.
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 4
TABLE OF CONTENTS
Team Update 5
Proposals for Mandate Amendments 8
Portfolio Update 33
Appendices
Appendix 1 – Portfolio Holdings 41
Appendix 2 – UK Market Overview 43
Appendix 3 – Global Alpha Fund Additional Details 48
Appendix 4 – Biographies 55
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 5
Portfolio Manager
Kieran Farrelly
Your Team
Client Director
Alex Bignell
Team Update
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 7
CBRE Locations 438 Offices; 35,000+ Employees
CBRE Global Investors Locations 32 Offices; 1,100+ Employees
CBRE Global Multi Manager Locations: 4 Offices; 53 Employees
As of March, 31 2012
Global Platform
Offices in London, The Hague, Boston and Singapore
53 professionals
12 nationalities employed
Information advantage through CBRE Global Platform
Global Solutions
AUM: $12.4B
Funds of funds
Separate accounts
Investments with multiple best-in-class operating partners
Primary funds, club deals, co-investments and secondaries
Investments in 186 vehicles with 83 managers
Investments in 28 countries
CBRE Global Multi Manager
CBRE Global Platform
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 8
Organisational Structure
CEO
Jeremy Plummer
Legal/Admin
Heleen van ’t Hof
Florence Ibiam
Laura Taylor
Marketing and Investor Services
Head: Hannah Marshall
Max Johnson, Sharon Jandu
COO
Stuart Savidge
Continental Europe
Region Head: Alexander van Riel
Tjarko Edzes
Achal Gandhi
Sonia Gonzalez
Juan Acosta
Baptiste Blanchy
Robert Muilwijk
Assistant: Bianca Schumacher
CIO
Ian Gleeson
Corporate Accountant
Vikash PatelFinancial Operations
and Client Reporting
UK
Region Head: Alex Bignell
Dugal Hunt
Kieran Farrelly
DJ Dhananjai
Mark Adcock
Emma Kenyon
Harriet Lilley
Analyst – TBA
Global
Ivo de Wit
Francijn de Ruijter
Mark Gnotke
Americas
Region Head: Scott Brown
Matt Tepper
Justin Seaman
Anthony Tracy
Assistant: DeAnna Thomas
Asia Pacific
Region Head: Adrian Baker
Alex Crossing
Adriel Choy
Chris Yeo
Analyst – TBA
Portfolio Risk
Claire Liu
Proposals for Mandate Amendments
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 10
The investment objective of the mandate is to out-perform the IPD UK PPF All Balanced Funds Index by 0.75% per annum over rolling three year periods, net of management fees and gross of performance fees
Investments are permitted in property funds, real estate securities and cash
Investment restrictions as per the current Investment Management Agreement (IMA):– Minimum allocation to open-ended funds of 50% of NAV
– Maximum investment in RREEF controlled vehicles of 30% of NAV
– Maximum portfolio average gearing level of 30% LTV
– Maximum portfolio average gearing level of non-balanced funds of 50% LTV
– Maximum investment in Continental Europe of 20% of NAV
– Maximum investment in a single investment of 20% of NAV
– Maximum cash exposure of 10% of NAV
– Maximum listed securities exposure of 10% of NAV
Current Mandate Overview
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 11
Current Allocations
Core Balanced 47.7%
Core Specialist 31.9%
Value Add/O pportunistic 15.5%
Cash 4.9%
O pen ended 45.3%Close ended 49.9%Cash 4.9%
Style Allocation (Based on invested NAV)* Open-ended vs. Closed-ended (based on invested NAV)*
Core balanced funds are typically open-ended vehicles
Core specialist funds and Value add/Opportunistic funds are typically closed-ended vehicles
*The Palmer GVA Unit Trust is a core balanced diversified fund with a closed-ended structure
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 12
GMM UK Relative Return Mandate Standard Propositions
Strategic Allocations
BenchmarkPerformance
ObjectiveTracking
Error
Balanced PUTs
Allocation
Core Specialist
Funds Allocation
Value-Add / Opportunistic
Funds Allocation
Average Leverage
IPD All Balanced Funds Index 0.50% 2.0% 35.0% 55.0% 10.0% 17.5%
IPD All Balanced Funds Index 0.75% 2.5% 30.0% 52.5% 17.5% 22.5%
IPD All Balanced Funds Index 1.00% 3.0% 25.0% 50.0% 25.0% 25.0%
IPD All Pooled Property Funds Index 0.50% 2.0% 25.0% 55.0% 20.0% 22.5%
IPD All Pooled Property Funds Index 0.75% 2.5% 20.0% 52.5% 27.5% 27.5%
IPD All Pooled Property Funds Index 1.00% 3.0% 15.0% 50.0% 35.0% 30.0%
CBRE GMM advocate a generally higher weighting to core specialist funds than ING; these are preferred on account of expected stronger performance from
core specialist operators which have only moderately higher overall gearing
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 13
The current portfolio is unlikely to meet its performance objective for the following reasons:− The portfolio’s weighted average dividend yield of 3.9% is below the current benchmark yield of 4.2%*− The legacy RREEF holdings (21.8% of NAV) are expected to underperform. We are actively engaging with
RREEF to exit these holdings. Igloo Regeneration Partnership (6.4% of NAV) is also likely to drag performance over the near term
− The existing exposure to balanced funds (47.7% of NAV) is not consistent with the strategic allocation required to meet the performance objective
The mandate’s minimum investment exposure to open-ended funds, which is currently in breach (48% vs. 50%), would mean an immediate requirement to acquire an additional open-ended holding to remedy this breach
If this restriction were relaxed then we would seek to bring the portfolio’s strategic UK allocations in-line with our standard proposition and improve performance going forwards via:
− Increasing exposure to prime dominant retail and industrial/logistics assets− Taking advantage of current discounts to NAV in preferred core specialist funds e.g. the Henderson UK
Shopping Centre Fund at a 7-8% discount to NAV− Make commitments to newly originated club transactions which fit strategic themes such as the lack of high
quality logistics assets or the constrained property lending environment
Consider widening mandate to include a global property exposure
Mandate Strategy
*Excluding managed funds that do not distribute
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 14
London Borough of Newham Superannuation Fund Strategic Risk Framework
Key Metrics
Net Performance Objective
0.75% above the IPD All Balanced Fund Index net of management fees, gross of perf. fees
Target Income Yield 0.5% > Benchmark
Target Risk 2.5% tracking error (Max 3.0%)
Target Financial Leverage
20-25% LTV (Max 30%)
Target Number of Holdings
15-20Current Fund Style Allocations
0%
10%
20%
30%
40%
50%
60%
70%
Cor
e Ba
lanc
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Cor
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Valu
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/Opp
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ACTUAL MODEL
Proposed Fund Style Allocations
0%
10%
20%
30%
40%
50%
60%
70%
Cor
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Cor
e Sp
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list
Valu
e Add
/Opp
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nist
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Cas
h
ACTUAL MODEL
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 15
Liquidity Analysis as at 31st March 2012
4.9%
7.0%
3.6%
5.6%
9.8%
19.3%
4.2%
2.5% 2.5%
5.9%
9.3%
5.8%
1.2%
9.4%
6.4%
1.6%1.2%
0 Yr
2 Yr
4 Yr
6 Yr
Cash
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15%
20%
25%
% o
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Portfolio weightOpen ended funds Closed ended funds
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 16
UK Secondary Market Pricing
Source: CBRE Global Multi Manager, Jones Lang LaSalle, April 2012
Fund StyleTypical LTV
RatioPricing vs NAV
Balanced Funds 0-15% 0 to -2%
Retail Warehouse Funds 0-40% -3 to -10%
Shopping Centre Funds 0 -25% -5 to -8%
Central London Office Funds
10-40% -5 to -8%
Industrial Funds 0-50% -5 to -25%
Student Accommodation Funds
40-50% -3%
Other – e.g. Healthcare Funds
40-50% -8 to -10%
Pricing vs NAV by Fund Style
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 17
Preferred UK Strategies
Bullring, Birmingham
Henderson UK Shopping Centre Fund
Blithehale Court, London, E2
UNITE UK Student Accommodation Fund
Core Themes
Prime quality assets with secure income streams
Prime dominant shopping centres
Industrial property located in the South East region
Non-mainstream property types with resilient demand and high income yields
− Student housing in leading university cities
Value Add/Opportunistic Themes
Take advantage of bank distress
− Acquire portfolios cheaply through bank-driven disposals
− Provide mezzanine finance to bridge the re-financing gap
Pre-let development in selective markets where tenant demand is unsatisfied by current stock
Mis-priced high yield property
− Fundamentally sound assets trading below replacement cost
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 18
Airport PUT is a Specialist industrial fund concentrating on industrial estates and warehouses in the Heathrow area
and other major UK airports.
Estimated average unexpired lease length is 7.8 years which is above the IPD All Industrial Benchmark.
The fund’s underlying rental income has increased largely due fixed uplifts and rent free incentives expiring.
The Fund has 19 properties; 93% in the Heathrow area.
Airport Industrial Property Unit Trust (Existing Holding – Core Specialist)
Manager Scottish Widows
Risk profile UK Core Specialist
Fund life (earliest wind up)
March 2015
No of assets 19
Portfolio value £313.7m (NAV)
Loan to value 24.5%
Heathrow, Shorthaul Catering Base
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 19
Henderson Shopping Centre Fund (Target Holding – Core Specialist)
Source: IPD, CBRE Global Multi Manager, Henderson
Henderson Shopping Centre Fund has a diverse portfolio of Prime UK Shopping centre's which dominate the
catchment, including the Bullring in Birmingham and Buchannan Galleries in Glasgow.
One of the stronger performing funds in the portfolio, with long leases and relatively small proportion of leases
reverting in the next 3 years.
We actively worked with the fund manager to enhance the governance and investor terms including favourable terms
for our clients, a seat on the UAC, reduced fee alongside an extension of fund life to 2021 from 2014.
Portfolio Highlights
Manager Henderson
Risk profile Core Specialist
Fund life (earliest wind up)
July 2014
No of assets 4
Portfolio value £587m (NAV)
Net initial yield 5.8%
Loan to value 10.7%
Bullring, Birmingham
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 20
Roxhill Industrial/Logistics Opportunity (New Commitment – Value Add)
Opportunity to invest in a newly established specialist private industrial/logistics development fund whose activity will be focused in the East Midlands and South East
regions in the UK.
The management team are very experienced and have a strong track record in this market segment. This was highlighted by a recently announced development
partnership which the company entered into with the largest specialist UK industrial REIT.
The fund will be focused on the development of prime industrial and ‘big-box’ warehouse assets. The risk of this activity will be minimized through the signing of pre-lets by
tenants prior to any major works being undertaken.
There is the potential in the future for GMM to access the completed assets on behalf of its clients. These will be prime well located properties, let on long lease terms, with
a significant proportion of the income stream having RPI linked leases.
Investment Category
Opportunistic industrial / logistics
Fund Life 5 years
Expected Return
20%+ IRR
Gearing n/a
Target size £80m GMM will
commit £30m of this
Preferred Return
12%
Investment Summary Site LocationsPortfolio Highlights
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 21
UK retail warehouse sector for high yield and good relative value.
Strong portfolio with a number of parks with A1 planning consents where demand from tenants remains strong.
Manager has maintained extremely low void rate at 1.1% by ERV.
NIY 5.35%; NEY 5.43%.
Weighted average lease expiry is 6.8 years.
The Fund continues to demonstrate good performance above benchmark.
Source: IPD, CBRE Global Multi Manager
Retail Park
Manager Standard Life
Risk profile Core Specialist
Fund life (earliest wind up)
June 2015
No of assets 10
Portfolio value (NAV) £825m
Loan to value 0.0%
Standard Life Retail Parks Trust (Existing Holding – Core Specialist)
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 22
Debt Investment Opportunity
GMM view Debt as an attractive investment opportunity and have already invested in a preferred debt fund on behalf of a number of clients
There is a general shortage of Debt supply given the reduced appetite of banks in the wake of the financial crisis and due to the ‘re-financing gap’ we believe debt yields are mis-priced relative to prospective equity returns
Proposals for investment are in the mezzanine layer of financing (between the senior debt and equity positions) and whole loan or ‘stretched senior’ positions (mezzanine and senior) on good quality income producing assets
Both mezzanine and whole loan positions require documentation with appropriate covenants and features to protect the lender in a downside scenario
Current Leveraged Property Investment Capital Structure
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 23
Property Derivatives Opportunity
Property Derivatives can provide a range of synthetic exposures to the property market
Derivatives include swaps, structured notes, and the InProp UK Commercial Property Fund
Such holdings are generally used on a tactical basis when derivative pricing provides a return opportunity relative to projected market performance
Alternatively inProp, an ungeared balanced UK fund, has a target to perform in line with the IPD Annual Property Index, which measure the performance only of direct property investments
inProp has low tracking error and can provide additional liquidity in a portfolio via monthly redemption windows
Risks (including counterparty and structuring) are appropriately assessed and contracts requiring open positions and short term margin calls are not maintained
We believe Property Derivatives can be utilised to positively benefit portfolio performance; opportunistic pricing may on occasion only be available for a relatively short period – hence our request for inclusion in the IMA
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 24
CBRE Global Investors estimates that the global institutionally-investable real estate market has a value of $26 trillion
This is predominantly (c. 76%) made up of developed markets
However with the demographic and structural trends underway, emerging markets are expected to increase their share to c. 37% by 2020
The UK has a relatively large investable real estate investment market, yet represents only 5% of the global universe
By broadening allocations to include markets outside the UK, investors can substantially increase their opportunity set
CBRE Global Investors believes that a key attraction of the global market is that it offers significantly greater opportunities for skilled managers to outperform by allocating capital, top down, to markets which out-perform, as well as by good stock selection within markets
Global Real Estate Opportunity
2011 Global Investable Universe
2020 Global Investable Universe
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 25
Market Overview
Global growth diverging between robust recovery in USA, Asia Pac and slower growth in Europe
European Central Bank liquidity injection has helped Eurozone financial markets
Construction pipelines are limited in developed markets, resulting in shortage of space meeting modern requirements
Economic growth and limited new supply expected to drive rental recovery, especially in US, Japan, Australia and Poland
Property attractively priced relative to current bond yields in most markets
Opportunities for higher return seeking investments where general risk aversion is mis-pricing risk
-2
0
2
4
6
8
10 Forecast annual GDP growth, % pa. Source: EIU.
2012 F 2013 F
Source: CBRE Econometric Advisors; CBRE Global Investors
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 26
Diversification Benefits From Global Real Estate
UK Equities
UK GiltsUK
PropertyEurozone Sweden Canada US
Australia
JapanAsia ex-
Japan
UK Equities 1.0
UK Gilts 0.1 1.0
UK Property 0.4 -0.2 1.0
Eurozone -0.1 -0.3 0.2 1.0
Sweden 0.0 -0.4 0.5 0.4 1.0
Canada -0.1 -0.3 0.4 0.6 0.7 1.0
US 0.0 -0.2 0.6 0.6 0.7 0.8 1.0
Australia -0.1 -0.5 0.5 0.5 0.8 0.8 0.9 1.0
Japan -0.2 -0.3 0.0 0.6 0.4 0.8 0.5 0.6 1.0
Asia ex-Japan* 0.2 -0.4 0.3 0.2 0.2 0.1 0.2 0.4 0.2 1.0
*Asia ex-Japan returns are calculated using prime office and retail total returns.
Source: CBRE-Ikoma, IPD, NCREIF, PMA, CBRE Global Investors
UK Asset Class vs Global Direct Real Estate Market Total Return Correlations 1991-2010
• Global Property reduces risk as a result of low correlations, especially with Asia-Pacific
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 27
Impact of Adding a Global Exposure
UK vs. Global Indirect Real Estate Portfolio Absolute Return Risk-Return Trade-Off
Since global real estate is not perfectly correlated with UK property, adding global will initially reduce risk
We have analysed the mix of domestic UK exposure and global exposure that will provide the best risk adjusted returns in an absolute sense
This analysis suggests an optimum mix in the region of 50:50 between domestic UK and global real estate – but the mix will depend on client’s overall needs and
objectives
Allocations
UK 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Global 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Average Return 8.0% 8.2% 8.4% 8.6% 8.8% 9.0% 9.2% 9.4% 9.6% 9.8% 10.0%
Volatility (SD) 12.3% 11.9% 11.7% 11.6% 11.6% 11.7% 12.0% 12.3% 12.8% 13.4% 14.0%
Return Per Unit of Risk
0.65 0.69 0.72 0.74 0.76 0.77 0.77 0.76 0.75 0.73 0.71
Source: CBRE GMM, Dec 2011
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 28
Accessing the Global Real Estate Market – a wider opportunity set
0
20
40
60
80
100
120
140
160
Num
ber
of F
unds
Americas Europe Asia Pacific
Unlisted Real Estate Fund UniverseUnlisted Real Estate Fund Market Growth
Source: Prequin, Property Funds Research
Accessing direct real estate market returns is all but impossible given the quantum of capital required to reduce specific risk in property portfolios
Over recent years the real estate fund management industry has evolved to meet increasing cross-border investor demand and there is now a $2.2 trillion (gross asset
value) universe of unlisted real estate funds
The challenges are the use of leverage in funds, tax, fees & costs, currency risk, and illiquidity. These should all be accounted for when considering a global allocation
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 29
Global Alpha Fund Current Status
Portfolio summary at December 2011 Global Alpha
Total commitments $158.3m(2)
Portfolio value $121.8m
Uncalled commitments $11.6m
Capital available $36.5m
No of investments 10
Loan to value ratio 45%Exposure to a single manager 15.6%
Exposure to a single fund 15.3%
1 Net return calculated after advisory fees, organisational expenses and carried interest or incentive fees.
2 Total commitments as at 31 Dec 2011 were $158.3m. Total Commitments as at 31 March 2012 including mandated commitments to GMM were $255.0m.
Q4 2011 12 months
Since Inception
(*) TargetFund Return (excl. Currency) 1.6% 9.5% 10.3% 9-11%
To exploit the Global Real Estate opportunity, GMM launched Global Alpha in November 2010:
The portfolio produced a return of 10.3%1
since inception relative to the performance objective of 9-11%
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 30
Global Alpha Fund Target Portfolio
1 Targeted net IRR calculated after advisory fees, organisational expenses and carried interest or incentive fees.
2 Investment made during Q1 2012
Fund Strategy Fund style
Structure
LTV Expected Return (5yr) 1
Expected dividend yield
Allocation%
Europe European Prime Logistics Fund
Industrial Core Open 40% 8.9% 6.5% 2.8%
Nordic Diversified Fund Diversified
Value Add Open 55% 7.0% 6.0% 2.9%
European Shopping Centre Fund
Retail Core Closed 40% 10.5% 5.0% 5.0%
Poland Shopping Centre Fund
Retail Core Plus Closed 55% 14.5% 8.2% 7.5%
UK High Yield Other Value Add Closed 55% 13.0% 9.0% 6.6%
Asia-Pacific
Australian Office Fund Office Core Open 12% 9.0% 6.5% 8.3%Australian Industrial Fund Industrial Core Closed 28% 9.0% 7.0% 3.2%Japan Industrial Fund Industrial Value Add Closed 60% 15.0% 9.0% 5.0%Japan Office Fund Office Core Closed 50% 10.0% 7.0% 3.3%Hong Kong Logistics Fund Industrial Core Open 20% 10.7% 5.1% 5.6%NZ Retail Retail Core Closed 45% 12.0% 6.5% 4.7%
US US Balanced Funds Diversified
Core Open 23% 9.3% 5.0% 15.0%
US Industrial Fund Industrial Core Plus Open 40% 10.0% 5.0% 8.3%US Office Fund 2 Office Core Plus Open 50% 12.0% 6.0% 11.6%US Retail Fund Retail Core Closed 50% 10.0% 8.0% 5.3% US High Yield Fund Other Value Add Closed 60% 13.0% 7.0% 5.0%Total 40% 11.0% 6.5% 100.0%
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 31
Current Portfolio Allocations
Source: CBRE GMM, Dec 2011
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 32
Summary of GMM Global Investment Rationale
Greater potential opportunity set, diversification and risk adjusted returns from global real estate
Established Global fund of funds
Existing diversified global portfolio
Premier global real estate platform
− In-house research capability and access to real time market information
− Access to local investment opportunities, many of which are not widely marketed
− Ability to underwrite the underlying real estate in every market around the world
Experienced local teams based in all three regions
Strong portfolio risk management
We are happy to arrange a presentation with the Global Alpha team
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 33
To ensure that we are best able to manage the mandate in accordance with your performance objective we would recommend the following:
– Minimum allocation to open-ended funds of 25% 50% of NAV – Maximum investment in RREEF controlled vehicles controlled by a single manager of 30%– Maximum portfolio average gearing level of 30% LTV– Maximum portfolio average gearing level of non-balanced funds of 50% LTV– Maximum investment in Continental Europe Global Property of 20% of NAV– Maximum investment in a single investment of 20% of NAV– Maximum cash exposure of 10% of NAV– Maximum listed securities exposure of 10% of NAV– Maximum property derivatives exposure via indirect funds and/or structured notes of 10% of NAV– Maximum allocation to funds with predominantly property debt related investments 10% of NAV
The other options which are available to remedy the existing investment restriction breach are to either:
– Adjust the minimum investment exposure to open-ended funds restriction to 45%; or– Maintain the existing investment restrictions and top up an existing open-ended holding or purchase a new
open-ended holding. This would be achieved via a secondary market transaction using available monies
IMA Investment Restriction - Proposed Amendments
Portfolio Update
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 35
Position as at 31st March 2012
Property type exposure (GAV) as at 31st
March 2012
Fund style exposure (NAV) as at 31st
March 2012
Key portfolio metrics
Portfolio value £86.9m
Unlisted Funds £82.7m
Cash £4.2m
Uncalled fund commitments*
£1.5m
Undrawn client commitments**
£0.3m
Capital available to commit**
£3.1m
Loan to value ratio (ND/GAV)
13.6%
Investment in in-house funds
0.0%
•Roxhill Industrial Fund (FRXL Co-Investment)
** Cash on account (Including income) + Undrawn client commitments – Outstanding Fund commitments.
Unit Shops 9.2%
Shopping Centres 7.5%
Retail Warehouse 21.9%
Central London O ffices 16.3%
O ffices - Rest of UK 8.3%
Industrial 17.3%
O ther Commercial 13.4%
Listed Securities 0.0%
O verseas Property 0.0%
Cash 6.1%
Core Balanced 47.7%
Core Specialist 31.9%
Value Add/O pportunistic 15.5%
Cash 4.9%
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 36
Source: CBRE Global Multi Manager; Portfolio weightings as at 31st March 2012; underlying fund data as at 31st December 2011
Note: Sector weightings graph relative to benchmark based on GAV and excludes non-UK investment
UK Sector Allocation Relative To Benchmark
Relative Sub-Sector Weightings
-8.0%
1.5%
3.3%
3.7%
-5.4%
2.6%
3.0%
0.0%
-0.6%
-10% -5% 0% 5%
Unit Shops
Shopping Centres
Retail Warehouse
Central London Offices
Offices - Rest of UK
Industrial
Other Commercial
Listed Securities
Cash
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 37
Performance to 31st March 2012
Portfolio return of 0.2% on 3 month and 4.5% on a 12 month basis trailing the benchmark, this is as a result of
A further weakening of the RREEF, Igloo Regeneration and Quercus Healthcare holdings
CBRE GMM are in active dialogue with RREEF regarding the future of the RREEF UK Core Property Fund to improve performance prospects and liquidity
0.2%
4.5%
5.4%
-6.5%
3.3%
0.8%
5.7%
8.8%
-3.6%
5.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Q1 2012 1 Year 3 Years (p.a.) 5 Years (p.a.) Since Inception (p.a.)
Portfolio Benchmark
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 38
0.1%
0.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-0.1%
-0.1%
-0.2%
-0.3%
-0.4% -0.4% -0.3% -0.3% -0.2% -0.2% -0.1% -0.1% 0.0% 0.1% 0.1%
West End of London Property Unit Trust
Airport Industrial Property Unit Trust
M&G Secured Property Income Fund
The Palmer GVA Unit Trust
Standard Life Investments UK Retail Park Trust
Blackrock UK Property Fund
Cordea Savills UK Income & Growth Fund
Industrial Property Investment Fund
The Palmer Capital Development Fund II UT B
The Palmer Capital Development Fund II UT A
UBS Triton Property Unit Trust
Cash
The Palmer Capital Development Fund II Unit Trust
Igloo Regeneration Partnership
Standard Life Investments UK Shopping Centre Trust
Q uercus Healthcare Fund
RREEF UK Core Property Fund (A Units)
RREEF UK Property Ventures Fund No.3 Exempt Unit Trust
Performance – 3 Month Weighted Contribution Relative to Benchmark
Transactions
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 39
Recent Investment Activity
Fund Transaction Date Currency (Local) Amount (Local) Amount (GBP)
Airport Industrial Property Unit Trust Purchase Feb-12 GBP £0.619m £0.619m
Blackrock UK Property Fund Sale Feb-12 GBP £0.295m £0.295m
Blackrock UK Property Fund Sale Feb-12 GBP £0.848m £0.848m
Blackrock UK Property Fund Sale Jan-12 GBP £0.295m £0.295m
FRXL Co-Investment LP Commitment Jan-12 GBP £1.450m £1.450m
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 40
Newham’s largest holding (19.3% of NAV) is a legacy investment in the RREEF UK Core Property Fund – an underperforming UK balanced fund that has a significant
redemption queue
Following investor action, RREEF have conducted a comprehensive review of the fund to address liquidity requirements and a stabilisation of fund performance while
maintaining a well balanced portfolio of assets
The outcome of the review is a recommendation to merge the fund with another core balanced fund
− The preferred fund to merge with is the BlackRock UK Property Fund
Ongoing due diligence is being conducted by BlackRock and investor approval will be required to approve any transaction
We are actively monitoring the process and will keep you informed as this progresses further
RREEF UK Core Fund
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 41
Conclusion
The portfolio is projected to underperform the performance objective due to the current portfolio composition (vs. target allocations) and underperforming legacy holdings, inc. those of RREEF
Recommendation to amend mandate investment restrictions enabling increased weighting to core specialist funds and widening of mandate to include Global exposure, Debt and derivatives
We believe this will best enable Newham to achieve its performance objectives
Ongoing engagement with RREEF regarding progress concerning the RREEF UK Core Property Fund
Appendix 1 – Portfolio Holdings
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 43
Portfolio Holdings as at 31st
March 2012
Fund Name NAV (£m) % of Portfolio¹ Undrawn (£m)Distribution Yield (%)
Leverage (D/GAV)
Comment
Airport Industrial Property Unit Trust £5.131m 5.9% £0.000m 6.2% 24.5%A specialist, lowly geared, closed-end fund investing in the industrial sector. The fund concentrates on prime industrial estates and warehouses with a focus in the Heathrow area, but also provides some exposure to other major UK airports.
Blackrock UK Property Fund £6.096m 7.0% £0.000m 4.2% 3.3%The largest, core, balanced open-end UK fund. Predominantly prime quality assets with above average exposure to the 'other' sector.
Cordea Savills UK Income & Growth Fund £4.881m 5.6% £0.000m 5.5% 5.2%Open-end balanced fund with a small portfolio of high-quality assets and strong covenants with an above average income distribution.
FRXL Co-Investment LP £0.000m 0.0% £1.450m 0.0% 0.0%Closed-ended specialist fund focussed on the development of large logistics facilities and industrial property in the East Midlands and South East regions.
Igloo Regeneration Partnership £5.542m 6.4% £0.000m 0.0% 0.0%Opportunistic development fund that partners with experienced developers to undertake urban regeneration projects throughout England and Wales.
Industrial Property Investment Fund £1.350m 1.6% £0.000m 4.7% 21.3%A specialist, lowly geared, closed-end fund investing in the industrial sector. Focus on good quality multi-let industrial estates in the South East of the UK delivering a robust income distribution.
M&G Secured Property Income Fund £3.167m 3.6% £0.000m 4.2% 1.3%A growing open-end balanced fund, holding low risk assets with an average lease length of 24 years and 87% of rental income linked to inflation.
Quercus Healthcare Fund £3.633m 4.2% £0.000m 5.9% 43.1%Specialist, value-add UK care home fund that owns care properties throughout the UK, focusing on income yield.
RREEF UK Core Property Fund (A Units) £16.737m 19.3% £0.000m 3.3% 6.1%Balanced, core, lowly geared open-end UK umbrella fund invested via the RREEF UK sector specialist funds (Industrial, Retail and Office).
RREEF UK Property Ventures Fund No.3 Exempt Unit Trust £2.167m 2.5% £0.000m 0.0% 57.0%Opportunistic fund, currently in breach of its LTV covenant, distributions have been suspended and assets are being sold to pay down debt.
Standard Life Investments UK Retail Park Trust £8.098m 9.3% £0.000m 4.7% 0.0%An ungeared core specialist retail warehouse fund predominantly invested in out-of-town open A1 fashion parks, with a bias towards the South East.
Standard Life Investments UK Shopping Centre Trust £5.028m 5.8% £0.000m 4.7% 0.0%Specialist, ungeared prime shopping centre fund. Assets include Brent Cross Shopping Centre and Brighton's Churchill Square Shopping Centre.
The Palmer Capital Development Fund II Unit Trust A £1.067m 1.2% £0.000m 4.4% 5.1%An opportunistic development fund, with a diversified portfolio. Strategy is to purchase assets from distressed sellers and reposition for sale.
The Palmer Capital Development Fund II Unit Trust B £1.023m 1.2% £0.000m 4.4% 5.1%An opportunistic development fund, with a diversified portfolio. Strategy is to purchase assets from distressed sellers and reposition for sale.
The Palmer GVA Unit Trust £2.142m 2.5% £0.000m 6.2% 0.0%A diversified, ungeared fund with a high quality portfolio which includes long leases and a low-risk tenancy profile providing a robust income stream.
UBS Triton Property Unit Trust £8.478m 9.8% £0.000m 4.9% 6.5%Large, core, balanced open-end UK fund. The manager has improved asset quality and performance through active management and portfolio repositioning.
West End of London Property Unit Trust £8.159m 9.4% £0.000m 3.5% 31.3%Specialist, geared fund invested in West End offices in London. The fund adds value through refurbishment / development of assets and will wind down from 2015 onwards.
Cash £4.218m 4.9% £0.000m 0.0% 0.0%
PORTFOLIO TOTAL £86.916m 100.0% £1.450m
NAV
Appendix 2 - UK Market Overview
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 45
Environment is being overshadowed by concerns over sovereign debt crisis and growth outlook. The indications are that this is starting to impact the real estate markets as transaction volumes slow and investor unease increases
The ongoing problems in the wider Eurozone and uncertainty over its direction have had and will continue to have a material effect on both fundamentals and sentiment in the UK
The UK has gone into recession in 2012, as a combination of austerity, ongoing de-leveraging, higher taxes and weak business sentiment and consumer confidence impacts activity
Occupier market conditions remain subdued, especially outside of London and the South East due to the impact of austerity measures. The majority of property segments will see rental value declines this year
Investors have shown strong demand for relatively low risk Grade-A assets leading to a historically wide pricing divergence between prime and secondary (Grade B) property assets; this gap is likely to widen
UK total returns, as measured by IPD, are starting to decelerate as a weak rental recovery is offset by a marked slowdown of yield compression; negative total returns are anticipated this year
Property lending conditions are now more constrained than last year and lending capacity to property is shrinking
We are now starting to see banks working through their loan books more meaningfully and as a result bring assets to market
UK Market Overview
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 46
The values of more secondary assets have seen little recovery since the downturn and have declined in real terms
CBREGI are projecting -8% nominal capital growth in 2012
Source: IPD, Merrill Lynch
Q2 07 – Q209
Q2 09 – Q4 11
Prime Shops -36% 27%
Secondary/Tertiary Shops -39% 2%
Prime Shopping Centres -41% 24%
Secondary/Tertiary Shopping Centres
-50% 3%
Prime Industrial -40% 20%
Secondary/Tertiary Industrial
-42% -1%
Prime Central London Offices
-43% 42%
Secondary Rest-UK Offices
-43% -18%
IPD Capital Value Growth:UK Commercial Property Capital Values, % 3m/3m. March 2012
UK Capital Value Growth
-0.75%
-15
-10
-5
0
5
10
Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12
UK Property Capital Values, % 3m/3m. Latest= Q1 2012. Source: IPD Monthly Index
June '07 - June '09 44% capital value fall
Through Q3 2011 ca. 18% capital value rise
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 47
-4
-2
0
2
4
6
8
05 06 07 08 09 10 11 12
Difference between 10 year UK gilts, linkers & BBB corporate debt and the IPD All Property Initial Yield, %. Latest=Feb. 15, 2012. Source: Bank of England, IPD.
Index-linked Gilts Nominal bond yield BBB rated corporate dedt
Difference between 10 year UK gilt yields, linkers & BBB corporate debt yield and the IPD All Property Initial Yield. Latest=Feb. 15, 2012. Source: IPD, Reuters, CBRE.
UK Property Yields Relative to Gilts and Corporate Debt
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 48
Gap between secondary and prime valuation yields, bps. Source: CBRE. Latest=Mar. 2012.
UK Property Prime/Secondary Yield Gap
0
100
200
300
400
500
600
99 00 01 02 03 04 05 06 07 08 09 10 11 12
Gap between secondary and prime valuation yields, bps. Source: CBRE Valuation Team. Latest=Mar. 2012.
Industrial Provincial offices
High Street Retail Retail warehouses
Shopping Centres
Appendix 3 - Global Alpha Fund Summary Details & Fund Examples
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Global Alpha Fund Key Terms
Fund structure Luxembourg FCP, Open-ended
Currency US $
The investments will not be currency hedged
Currency exposure reports will be provided quarterly to enable investors to manage currency overlays if required
Leverage No leverage at the GA Fund level, save for short term borrowing to cover drawdown's
Investment Period The Investment Period will be two years from the date of each investor’s commitment being accepted
Term Open ended with liquidity provisions 3 years after date of commitment
Redemptions Subject to 6 months notice, shares may be redeemed at 30th June or 1st December, subject to not more than 20% of total equity being redeemed in one year. The redemption price will allow for disposal costs of holdings.
Minimum Commitment
$5 million
Valuations
and reporting
Quarterly valuations prepared under IFRS applying INREV guidelines
Quarterly reports to investors and quarterly conference calls
Annual meeting
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 51
Global Alpha Fund Key Terms
Risk Controls No more than 50% in any individual region (Americas, Europe and Asia-Pacific)
Maximum allocation to emerging markets 20%
No more than 60% in each of the office, retail and industrial sector nor more than 20% in sectors other than these
No more than 15% in any one investment
No more than 20% in investments managed by the same manager
No more than 10% in predominantly real estate development-related funds
Maximum allocation to listed securities 15%
Maximum allocation to funds with a predominantly debt related investments 15%
Maximum allocation to property derivatives of 15%
Maximum weighted average leverage of investment funds 50% of their gross asset value
Minimum allocation to open-ended real estate funds of 25%
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 52
CB Richard Ellis Global Multi Manager - Risk Management
Operational Risk Committee
GMM COO chaired Quarterly meetings Representatives from GMM Financial Operations; GMM Investment Team and Group
Legal and Group Compliance attend
Control Framework ISAE 3402 Standard Annual external audit by Ernst & Young
Internal Audit Annual internal audit undertaken by CBRE
Investment Committee Oversight
Quarterly Review of Client Portfolio Performance Monitoring of compliance with Investment restrictions Group Compliance attend IC quarterly Client Review meetings
Portfolio Risk Analytics Comprehensive investment monitoring and forecasting framework Application of GMM proprietary portfolio risk management system
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 53
Income Capital Growth
Leverage Fees Tax Net IRR
5.1%
10.7%1
5.0%
2.7% Headline fees, 1.2% 0.2%
Targeted logistics property in Hong Kong, due to strong demand emanating from China and restricted supply in HK port area
Identified the leading specialist fund which is the dominant owner of prime assets in HK port area
Analyzed every building with assistance from CBRE Hong Kong investment and leasing team
Market has since experienced strong growth in rents and capital values
Result: immediate deployment of capital into high income producing portfolio
Investment: Hong Kong Logistics Fund
Hong Kong
Return Contribution
Portfolio Highlights
Manager Goodman Asia Limited
Investment category
Core
Fund life Open end (every 7 years)
No of assets 17 assets
Portfolio value $870m
Net initial yield 6.8%
Source: CBRE GMM, Dec 2011
1 Targeted net IRR calculated after advisory fees, organisational expenses and carried interest or incentive fees.
Please see Disclaimers page for more information on targeted returns
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 54
Investment: Poland Shopping Centre Fund
Targeted retail property in Poland due to high income yield on prime shopping centres combined with strongest consumer expenditure growth in
Europe
Introduced by CBRE Warsaw to one of the best portfolios of shopping centres
Negotiated terms for investment of €65m equity on behalf of various clients and option to provide additional equity
Negotiated change of legal structure to improve tax efficiency for our clients and revision of manager’s proposed terms
Result: immediate deployment of capital into high income portfolio with inflation linkage and upside potential
Income Capital Growth
Leverage Fees Tax Net IRR
8.2%
14.5%1
2.9%
7.9% Headline fees, 1.6% 2.0%
Performance fees, 0.9%
Return Contribution
Portfolio Highlights
Warsaw, Poland
Manager GE Capital
Investment category
Core Plus
Fund life 7 years
No of assets 9 assets
Portfolio value €550m
Net initial yield 8.0%
1 Targeted net IRR calculated after advisory fees, organisational expenses and carried interest or incentive fees.
Please see Disclaimers page for more information on targeted returns
Source: CBRE GMM, Dec 2011
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 55
Manager Phillips Edison
Investment Category
Core Retail Fund
Fund Life 7 years
Investment: US Neighbourhood Shopping Centre Fund
Well located grocer-anchored shopping centres in the US offer high income yield and secure cash flows
Approached leading specialist manager which operates exclusively in this segment
Negotiated exclusive vehicle for GMM clients to invest in partnership with domestically controlled private REIT
Result: Access to attractive strategy with competitive fees on tax efficient basis
Target no. of Assets
10-13
Target LTV 50%
Net Initial Yield 8%
Portfolio Highlights
Source: CBRE GMM, Dec 2011
1
1 Targeted net IRR calculated after advisory fees, organisational expenses and carried interest or incentive fees.
Please see Disclaimers page for more information on targeted returns
8.0%
0.8%
3.2%
1.1%0.5%
10.0%
0.4%
Income Capital Leverage Headline … Performance … Tax Net IRR
Return Contribution
Appendix 4 –Biographies
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 57
Alex BignellHead of UK - CBRE Global Multi [email protected] | +44 20 7268 7375
Alex is the GMM Regional Head of UK. Based in London, Alex has responsibility for relationship and portfolio management of clients, investment sourcing, selection and monitoring of investments in the UK. He is a member of the GMM Management Committee.
Alex has over 17 years experience predominately in the UK and was previously a Director at the Goodman Group where he was Fund Manager for a €1.7 billion pan European logistics fund responsible for all aspects of managing the fund including acquisitions, dispositions, debt financing and liaising with investors in the fund. Prior to this Alex was a Director at Credit Suisse in the real estate banking team responsible for structuring and raising equity for both public companies and private real estate funds.
Alex is a member of the Royal Institution of Chartered Surveyors.
Alex holds a Master’s in Land Economy from Cambridge University.
Biographies
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 58
Biographies
Kieran FarrellyDirector - CBRE Global Multi [email protected] | +44 20 7268 7421
Kieran is a Director within the Global Multi Manager team with responsibility for client portfolio management and sourcing and undertaking due diligence on UK investment opportunities.
Kieran previously spent four years in the Global Multi Manager team as the global strategist where he was responsible for portfolio strategy across clients and coordinating global unconstrained mandates. He has over eight years property investment and research experience, most of which has been spent assessing and managing portfolios of indirect property funds. Kieran has developed a number of the analytical tools and the portfolio risk management framework used by the business.
Prior to joining CBRE Global Investors in December 2007 Kieran was a Senior Analyst at Seven Dials a specialist property fund consultancy and fund-of-funds manager. Before that he was a Research Analyst at PRUPIM (M&G) covering property markets in the UK and Asia Pacific.
Kieran has an MSc in Economics from the University of Warwick and holds the Chartered Financial Analyst designation. He is also the current Chairman of the Society of Property Researchers.
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 59
Max JohnsonDirector – Marketing and Investor [email protected] | +44 20 7268 7461
Max is a Director within the Global Multi Manager team with responsibility for UK Investor Services.
Max joined the CBRE Global Multi Manager team in November 2011 following the acquisition of ING Real Estate Investment Management where he was responsible for UK investor relations in the indirect real estate business; prior to that he worked on fund management consulting, investment acquisitions, and new fund launches.
Before ING Real Estate he was a direct real estate fund manager at USS, and worked in investment fund management at Jones Lang Wootton (now La Salle).
Max is a qualified chartered surveyor, a member of the Investment Property Forum and sits on the IPF Advanced Education Programme Committee. He holds an honours degree in Geography from Edinburgh University, a diploma and an MSc in real estate from South Bank University along with an Investment Property Forum Diploma.
Biographies
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 60
Jeremy PlummerCEO - CBRE Global Multi [email protected] | +44 20 7268 7385
Jeremy is the CEO of CBRE Global Multi Manager and has overall responsibility for management of the business, key client relationships and key manager relationships. Jeremy is also a member of the GMM Investment Committee and the Global Leadership Team of CBRE Global Investors.
Jeremy has 23 years experience in the real estate industry, all in international roles. He joined CBRE Global Investors in June 2006 following the acquisition by CBRE Global Investors of Oxford Property Consultants (OPC). Prior to this Jeremy was Managing Director of OPC, an independent multi-manager and fund of funds manager. At OPC Jeremy advised various leading investors on global real estate strategies and established one of the first European fund of funds. Previously he was European Managing Director of Security Capital Group Inc, a US private equity real estate group. Prior to his Jeremy was Head of Real Estate for SPP (now renamed Alecta), the largest pension and life assurance company in Sweden, with responsibility for $3 billion direct and indirect property portfolio in Europe, the US and Asia.
Jeremy is a qualified Chartered Accountant.
Jeremy holds a Master’s in Agricultural and Forest Science from Oxford University.
Biographies
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 61
Biographies
Ian GleesonChief Investment Officer – CBRE Global Multi [email protected]| +44 20 7268 7428
Ian is Chief Investment Officer of CBRE Global Multi Manager and has overall responsibility for managing the investment process, formulating top down strategies and overseeing client investment plans. Ian is a member of the GMM Investment Committee and chairs the GMM Global Investment Team meeting.
Ian has over 19 years property industry experience and brings extensive experience of investing in real estate funds in Europe, North America and Asia, across the full risk spectrum. Ian joined CBRE Global Investors in August 2008 from Morley Fund Management where he was Head of International Property Multi-Manager, with responsibility for global mandates. He was previously Head of Property at the National Pensions Reserve Fund of Ireland. Prior to that Ian was Director of Indirect Prospects and Strategy at F&C Management Ltd.
Ian was a former member of the INREV Management Board and chair of the Investor Forum of INREV.
Ian holds a Bachelor of Arts (Hons) in Economics and Business Studies from Trinity College Dublin.
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 62
Ivo de Wit, Ph.D.Portfolio Manager – CBRE Global Multi [email protected] | +44 20 7268 7411
Ivo is a Global Portfolio Manager for CBRE Global Multi Manager. Based in London, he is responsible for performance, strategy, and investment decision making of the global portfolios.
Ivo previously worked as Global Portfolio Manager for ING Real Estate Select in London, where he was responsible for managing global multi-manager non-listed real estate investment accounts for institutional clients. Before that, Ivo was part of the Global Executive Team of ING Real Estate Investment Management. He has been responsible for strategic planning, asset allocation, investment selection and performance monitoring for both listed and unlisted funds. During his more than 10-year real estate investment career, he has worked in various regions around the world focusing on business and strategic direction, executing new business opportunities and allocating seed capital. In New York, Ivo was a Vice President and Head of US Strategy for ING Clarion, responsible for client and fund strategies and forecasting real estate returns.
Ivo is a member of the IPD Global Pooled Property Fund Indices Consultative Group and a member of the ULI European Office and Mixed Use Council and Policy & Practice Committee.
Ivo has a Ph.D. In Finance and holds a Master’s in Economics from Maastricht University.
Biographies
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 63
Scott Brown, CFAHead of the Americas - CBRE Global Multi [email protected] | +1 617 425 2827
Scott is GMM Regional Head of the Americas. Based in Boston, Scott has responsibility for relationship and portfolio management of clients, investment sourcing, selection and monitoring of investments in the Americas. Scott is a member of the GMM Investment Committee.
Scott is an experienced real estate professional with over 21 years experience. Scott was formerly Head of Global Real Estate at Ennis Knupp & Associates, a leading US multi-asset consulting firm, where he established the real estate practice and advised on $18 billion of investments in real estate funds. He was previously Managing Partner at Strategic Private Equity Analytics and held the position of Senior Department Head at State Street Corporation, and Consulting Manager at Kenneth Leventhal & Co.
Scott formerly chaired the performance measurement committee of the National Council of Real Estate Investment Fiduciaries (NCREIF) and is currently a voting member of NCREIF’s REIS Council. Scott is a member of the Research Committee at the Pension Real Estate Association, and is currently the Co-Chair of the CFA Institute’s IPC, GIPS Real Estate Update Sub-Committee.
Scott holds a Master of Science in Real Estate Development and Investment from Columbia University, and a Bachelor of Arts in Economics from the University of Massachusetts. Scott is also a CFA charter holder.
Biographies
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 64
Sander van RielHead of Continental Europe CBRE Global Multi [email protected] | +31 70341 9156
Alexander is GMM Regional Head of Continental Europe. Based in The Hague, Alexander has responsibility for relationship and portfolio management of clients, investment sourcing, selection and monitoring of investments in Continental Europe. He is a member of the GMM Investment Committee.
Alexander has worked for 13 years in the European property fund investment industry. Before joining ING Real Estate Investment Management in 2006, he was previously an Analyst and Fund Manager at Achmea in Amsterdam and Aberdeen Property Investors in Stockholm.
Alexander is a CFA charter holder.
Alexander holds a Master’s in Spatial Sciences at Rijks-Universiteit Groningen.
Biographies
CONFIDENTIAL AND PROPRIETARY London Borough of Newham Superannuation Fund | 65
Adrian BakerHead of Asia- CBRE Global Multi [email protected] | + 65 65 9334 81
Adrian is GMM Regional Head of Asia Pacific. Based in Singapore, Adrian has responsibility for relationship and portfolio management of clients, investment sourcing, selection and monitoring of investments in the Asia Pacific region. Adrian is a member of the GMM Investment Committee.
Adrian has over 10 years property industry experience and brings extensive experience of investing in direct, unlisted and listed real estate globally but with a focus on the Asia Pacific region. Prior to joining CBRE Global Investors Adrian was a Fund Manager at AMP Capital Investors, one of Australia’s largest investment managers, where he was responsible for various real estate portfolios across Asia based in Singapore. Prior to his move to Singapore Adrian was based in Sydney as Fund Manager responsible for its statutory fund with over US$3.0bn in assets. He also spent over 5 years working in the multi manager business of AMP Capital providing tailored real estate solutions to Australian superannuation funds.
Adrian has a Bachelor of Engineering (Hons) from the University of Technology, Sydney and a Graduate Diploma in Applied Finance & Investment from the Securities Institute of Australia
Biographies
The information in this document is confidential and meant for use only by the intended recipient. This material is intended for informational purposes only, does not constitute investment advice, or a recommendation, or an offer or solicitation, and is
not the basis for any contract to purchase or sell any security, property or other instrument, or for CBRE Global Investors to enter into or arrange any type of transaction. This information is the sole property of CBRE Global Investors and its affiliates.
Acceptance and/or use of any of the information contained in this document indicates the recipient’s agreement not to disclose any of the information contained herein.
www.cbreglobalinvestors.com
Americas
Boston
Los Angeles
Seattle
Newport Beach
Atlanta
Washington, DC
Philadelphia
Princeton
New York
EMEA
London (HQ)
The Hague
Madrid
Paris
Brussels
Luxembourg
Milan
Frankfurt
Prague
Stockholm
Budapest
Warsaw
Bucharest
Helsinki
Dubai
Asia Pacific
Singapore
Hong Kong
Shanghai
Taipei
Seoul
Tokyo
Melbourne
Sydney