The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
This long-only, open-end, unit trust-style product is managed by MQ Portfolio Management. This team is the former proprietary desk of the Macquarie equity markets group, in something of a move from long/short to long-only. They arenÆt taking a black box approach to security selection, but they will be using quantitative processes and systematic screening.
Fees are 5% upfront with a 1.5% management fee, and a 10% performance fee over a 5% hurdle. Liquidity is available daily.
The fund is trying to aim for equity-style returns with bond-like volatility. Macquarie Global Infrastructure Index has gone up on an annualised basis by 26% on average during the last three years. The new fund will invest in stocks included in that index as well as in companies expected to be included at some point.
Putative investors might feel concerned that their money will go into speculative brownfield infrastructure projects, for example building Indian sewers; the kind of projects for which the third world would like foreign investors to pony up multi-billions at the same time as their own indigenous tycoons target cross-border M&A deals of western brands. However, the concept of this new fund is that investors will get exposure to mature infrastructure plays where predictable cash flow streams are already flowing.
The fund is a retail-approved product in Hong Kong and dividends will be rolled up into growth of the units. This product is also available to accredited investors in Singapore, and a Singapore-specific product will be launched in the future, which is expected to have a greater emphasis on dividend distribution.
HSBC is fund administrator, custodian and trustee of the portfolio.
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
Insto roundup: Norway's Oil Fund praises China governance efforts; NPS commits $100m to taxi-hailing app
Norway's Oil Fund welcome Chinese proposals improving transparency and shareholder protection; HK's MPF assets surge 35% year on year; Korea's NPS commits $100m to TPG consortium to invest in taxi-hailing app; Poba commits W270bn to European property; Malaysia's EPF sees investment income rise 59% year-on-year in first quarter, and more.