Henderson Global Investors has launched the Luxembourg-based Asia-Pacific Property Equities fund. ...
Henderson Global Investors has launched the Luxembourg-based Asia-Pacific Property Equities fund.
Chris Reilly, manager of Henderson Asia-Pacific Property Equities, said around 50% of the fund will be invested in real estate investment trusts (Reits) with the remainder in listed property company shares.
He said: "Reits have a lower correlation to equities than listed property companies. There are also many different managers within the Reits market.
"Further diversification comes from the three main commercial property sectors: retail, industrial and offices. Diversification is also derived from the range of property markets in the region, from Australia and New Zealand through Hong Kong and Singapore to Japan."
As with Europe and the US, Reilly said that yields are at historically low levels in much of Asia-Pacific although he believes the outlook continues to be positive.
"Asia-Pacific is in an earlier phase of the current property cycle than western markets," said Reilly. "Higher returns from commercial property are being driven by rental income. Even with no or little capital growth, investors will enjoy a rise in total returns.
"The strengthening of domestic consumption across Asia indicates a positive outlook for the retail sector."
The Henderson Asia-Pacific Property Equities fund will not invest in companies that derive more than 40% of their earnings from outside Asia and will cap the weight of any holding within the portfolio at 7.5%.
The Luxembourg-based Henderson Horizon Fund range now has three property funds.
Minimum investment: $2,500
Initial charge: Up to 5%
Annual management fee: 1.2%
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