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.
The fund will comprise of a large equity exposure, with Public Mutual projecting that between 75% to 90% of its total net asset values (NAV) will come from this asset class. Of the PIADFÆs total NAV, up to 70% will be invested offshore in Asia-Pacific markets.
Within the universe of listed companies acceptable to sharia principles (similar to Western ethical funds), the fund will seek fundamentally undervalued stocks expected to pay attractive dividends of 3% or more, says Teh Hong-Piow, chairman. He says these dividends are now common in many regional markets.
Earlier this month, parent Public Bank mandated the firm to run a wholesale money-market fund, PB Cash Plus Fund. In January, Public Mutual was also active with several new fund launches, including the Public Far-East Balanced Fund and the Public Global Balanced Fund, which invest in similar markets to its new Islamic dividend fund.
The launch of its latest fund comes after a booming start to the year for MalaysiaÆs unit trust industry following the countryÆs government's decision to relax rules in April 2005, allowing unit trust funds to be invested overseas. Since the regulatory change, approximately 60 offshore funds have been launched, amassing a fund size of RM11.55 billion ($3.34 billion).
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.