The global fund manager believes that returns from real estate, underpinned by resilient income yields, will comfortably beat cash.
David Paine, the group's, head of real estate investment, said: "In an environment of low interest rates and a moderate economic recovery, the relatively secure yield from real estate remains attractive."
"Recovery is materialising in most global real estate markets, leading to tenant-demand improving as occupier confidence and business investment increases."
"Vacancy rates are falling as a result and strong rental growth is being recorded in some of the highly cyclical supply-constrained office markets such as Hong Kong, central London and Paris."
Paine says development financing disappeared rapidly following the global downturn, meaning the supply of good quality new space is low in most markets.
"We expect this to continue over the medium-term, leading to an improvement in yields," he said.
Performance of fund vs sector over 1-yr
Financial Express data shows Standard Life’s £666.7m Select Property fund has returned 5 per cent in the past year.