Asian Property and income vehicles to be domiciled in Luxembourg and given distributor status in the UK
Henderson Global Investors is to add two funds to its offshore Horizon range with the launch of Asian Income and Asian property share vehicles.
Both will be Luxembourg-domiciled Sicavs with distributor status for the UK market.
The first launch, the Henderson Horizon Asia-Pacific Property Equities fund, will be managed out of Singapore by Chris Reilly. The Asian Income fund will launch at the beginning of January 2006, although the group is yet to choose a manager for the vehicle. It will aim to pick up the growing theme of higher dividend payments from Asian companies.
The group has already established a presence in the area through the Far East Income Trust managed by Michael Watt, although he is not expected to run the new vehicle.
The property fund will be benchmarked against the EPRA/NAREIT Asia Pacific index. It will be open to invest across the Asia Pacific region, excluding Japan, in locally domiciled Real Estate Investment Trusts and property companies.
Although it will be able to invest across the region, its benchmark index only lists Reits in Australia, New Zealand, Hong Kong, Japan and Singapore. The fund will be free to invest for either growth or yield, dependant upon the prevailing market themes. It will have a number of restrictions in place preventing any one stock making up more than 7.5% of the portfolio and preventing any holding amounting to more than 10% of the company's market cap.
The fund will also be prevented from holding stocks in companies that derive more than 40% of their earnings from countries outside Asia. This will exclude the portfolio from holding the region's largest property stock, the Westfield Group, which is based in Australia.
As well as UK retail investors, the fund will be open across Europe and Asia. The group estimates the investable universe of Asian Reits to be in the region of $177bn. Hendersons has not fixed a target annual return for the fund but said that, in local currency terms, the index has returned approximately 9.5% pa over the past five years.
Two funds launched: Asian Income and Asian Property Shares.
Both Luxembourg domiciled and both with distributor status.
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