Press Release

IMA WELCOMES EUROPEAN PASSPORT FOR RETAIL REAL ESTATE FUNDS

14 March 2008

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.