Who’s looking after your pension?

Eight years after the global crash, investors are flocking back to property, the market is more diverse than ever before and there’s talk of overheating. A significant proportion of this renewed investment is the pension savings of ordinary people. So how confident can we be that it won’t happen again? Banks, insurers and pension funds must all meet tougher regulatory requirements imposed since the crash, but property remains less stringently regulated than other asset classes, less transparent, and its risk management procedures are less well developed. As the current market cycle wears on, investors will inevitably be drawn into taking riskier positions to secure improved returns – positions that could leave them dangerously exposed when the next crash comes. In this cover feature for Modus, I interviewed Martin Brühl of German fund manager Union Investment Real Estate, currently president of the Royal Institution of Chartered Surveyors, about his plans to set a global standard for risk management. I also spoke to RICS members about the challenges of spotting genuinely uncorrelated assets, identifying the real source of funds in a completely international market, and maintaining constant vigilance over a global portfolio.

Modus_Jan-Feb 2016 cover

Author: Katie Puckett

I am an experienced journalist, copywriter and editor who has covered the built environment for nearly 20 years. I’ve interviewed thousands of senior executives, politicians and experts in many fields and travelled to report on stories throughout Europe, the US, the Gulf states and India. My articles have appeared in many business and professional titles including Building, Estates Gazette, Inside Housing, the Bartlett Review, Insurance Times and Lloyd’s Market. I am co-author, with architect Bill Gething, of Design for Climate Change, published by RIBA, and I launched and edit The Possible, a thought leadership magazine for global engineering firm WSP. I'm also co-founder of Wordmule, an editorial studio that specialises in buildings and cities.