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Previously, these funds were only available as institutional products. The funds are RREEFÆs Asia-Pacific Real Estate Securities Fund, the Global Real Estate Securities Fund, and the Global Real Estate Income Securities Fund.
In Hong Kong, the funds will be offered to retail investors through Deutsche Asset Management in association with DWS Investment, and are available via a roster of distribution sources. Management fee is 1.5% and initial charge is 5%.
With the Asia-Pacific Real Estate Securities Fund, that fundÆs dollar-class and euro-class shares are up 39.5% and 21.3% respectively since their establishment. However, that return compares to their selected benchmark index, which is EPRA Asia (ex-Australia and New Zealand), which has gone up by 43.8%.
The fund has an 80% exposure to regional property companies like Mitsui Fudosan, New World Development and Mitsubishi Estate with the remainder invested in real estate investment trusts (Reits).
The other two funds are not Asia-focused and draw in global property exposure. The Global Real Estate Securities Fund and Global Real Estate Income Securities Fund differentiate by the former investing in property company shares and the latter investing in Reits and landlord/investment property stocks.
In Asia, the portfolio managers covering real estate for RREEF are William Leung, Chris Robinson, Murshidah Mohd and Kazuhiri Hide, and they report to Asia-Pacific head Daniel Ekins.
Plans for the future include similar launches of retail products for RREEFÆs hedge fund and infrastructure businesses, though at present such asset classes constitute a small slice of RREEFÆs business, with real estate currently accounting for 86% of RREEFÆs current assets under management of $97 billion.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
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SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.