Insight Investment enhances commercial real estate loan capability

Media updateRhiannedd Brooke+44 20 7321 1516rhiannedd.brooke@insightinvestment.comAndrew Capon+44 20 7321 1361andrew.capon@insightinvestment.comINSIGHT INVESTMENT ENHANCES COMMERCIAL REALESTATE LOANS CAPABILITYLONDON, 19 August 2013 – Insight Investment, one of the UK’s leading institutional fundmanagers, is enhancing its commercial real estate loans capability by agreeing an advisoryrelationship with DTZ Investment Management. Under the terms of the agreement, DTZ will assistInsight in the due diligence process enabling Insight to access an even broader spectrum of loans.DTZ will also provide Insight with data and property market views from its international researchteams.Insight’s CRE loans team encompasses a five-strong Investment Committee and an eight-strongInvestment Team. Joining the Investment Committee is Robert Peto, a property industry veteranof more than 40 years, who will advise Insight on property market trends and transactions.Peto is currently the chairman of DTZ Investment Management and served as a main boarddirector of DTZ for more than a decade. After training as a general practice surveyor, Peto headedvaluations and then fund management and was vice chairman of capital markets at DTZ.Throughout his career he has advised numerous pension funds, property firms and other assetowners on their real estate investment strategies. Peto is a Fellow and former Global President ofthe Royal Institution of Chartered Surveyors (RICS).The reduction of the appetite and capacity of the banking sector to finance CRE projects hascreated an opportunity for institutional investors. Insight is experiencing significant demand for itsexpertise in CRE loans. In order to meet this demand, Insight is also appointing DuncanWestbrook as an analyst focused on commercial real estate. Westbrook will join Insight inSeptember 2013.Westbrook has ten years’ experience at commercial real estate brokers and consultants Cushmanand Wakefield. In that time, he held a variety of roles focused on each component of the dealIssued by Insight Investment Management (Global) Limited. Registered in England and Wales.Registered office 160 Queen Victoria Street, London EC4V 4LA; registered number 00827982.Authorised and regulated by the Financial Conduct Authority.

Media updateprocess including market research, property marketing, valuation, financial modelling, and propertyacquisition due diligence.As an Associate Partner within Cushman and Wakefield’s EMEA Capital Markets team, Westbrookwas responsible for the sale, purchase, valuation and leasing of commercial real estate acrossEurope. He holds a BCom in Business Studies from the University of Edinburgh and an MA inProperty Valuation and Law from Cass Business School.Insight’s expertise in commercial real estate loans and client-focused approach enables it to tailorCRE loan strategies to clients’ individual requirements. Insight’s team can customise portfolios tomeet specific objectives relating to time horizon, fixed or floating interest payments, credit qualityand inflation-linkage.Senior loan portfolios are attractive to a diverse range of investors. They offer strong risk-adjustedreturns compared to other asset classes. Moreover, the contractual nature of the return and cashflow profile of loan portfolios makes them particularly attractive in strategic asset liability riskmanagement for pension funds and other institutional investors, including insurance companies.Adrian Grey, Head of Fixed Income at Insight, says: “Institutional investors already play asignificant role funding commercial real estate in the US. We expect a similarly thriving market willevolve in Europe. Institutional clients need yield. It is our belief the best risk-reward trade-off isfound in illiquid credit. The characteristics of this asset class, coupled with our exceptional trackrecord and focus on rigorous credit risk management, make Insight’s CRE loans strategy acompelling investment proposition.”Robert Peto adds: “With bank lending constrained, the increasing involvement of institutionalinvestors in the commercial real estate sector is an exciting and significant development. I feel surethat Insight Investment is well placed to make a contribution to this burgeoning market with its deepknowledge of loan and credit markets and extensive roster of institutional clients. Through the CREInvestment Committee, I look forward to using my experience to help Insight build on its propertyloan expertise.”– Ends –Issued by Insight Investment Management (Global) Limited. Registered in England and Wales.Registered office 160 Queen Victoria Street, London EC4V 4LA; registered number 00827982.Authorised and regulated by the Financial Conduct Authority.

Media updateNotes to editors:Insight Investment has one of most well-resourced and experienced fixed income teams in theUK. Insight takes an active approach to the management of all fixed income assets and has aconsistently strong performance track record: 99 per cent of Insight’s fixed income mandates haveoutperformed over five years 1 .Fixed Income Performance Summary (% of portfolios ahead of benchmark weighted byvalue)1 yr 3 yrs 5 yrsFixed Income 90% 96% 99%Cash 100% 100% 100%Insight has a very experienced team which manages more than €1bn, as at end March 2013 ofCRE lending exposure through both commercial mortgage-backed securities (CMBS) and directCRE loans. With any CRE exposure direct or indirect (such as CMBS) Insight does extensive duediligence and analysis.Insight can demonstrate considerable skill in choosing high quality loans, both by the return on ourCMBS/ABS investments and the fact that we have never had a CRE loan default. To date, ourfocus has been on European and UK property loans, specifically buildings located in France,Germany and the UK. The loans we have purchased have an average life of 3-5 years.CRE loans are secured on a commercial property asset. Typically, the borrower is looking toacquire ownership of a property, or refinance historical debt on an existing property, and seeks thefinancing in the same way a residential borrower does when taking out a mortgage. These loansare secured on the CRE asset and the lender has ultimate control over that asset should thepayment of interest and principal breach pre-agreed terms and conditions.1 As at March 31, 2013Issued by Insight Investment Management (Global) Limited. Registered in England and Wales.Registered office 160 Queen Victoria Street, London EC4V 4LA; registered number 00827982.Authorised and regulated by the Financial Conduct Authority.

Media updateInsight Investment is a leading asset manager focused on designing investment solutions to meetour clients’ needs. Founded in 2002, Insight’s partnership approach has delivered both investmentperformance and impressive growth in assets under management. Insight manages £255bn 2($395bn) across fixed income, liability-driven investment, absolute return, cash management,multi-asset, specialist equity and currency strategies. Insight Investment is owned by BNY Mellon,the global leader in investment management and investment services with $1.4 trillion in assetsunder management, as at 31 March, 2013.More information about Insight Investment can be found at: www.insightinvestment.com2 Assets under management are represented by the value of cash securities and other economicexposure managed for clients. Assets under management figure represents the combined assetsunder management of Insight Investment Management (Global) Limited and Pareto InvestmentManagement Limited, which became part of the Insight group on 1 January 2013. Data as at 31March 2013.Issued by Insight Investment Management (Global) Limited. Registered in England and Wales.Registered office 160 Queen Victoria Street, London EC4V 4LA; registered number 00827982.Authorised and regulated by the Financial Conduct Authority.