Prudential Investment & Securities intends selling to individual and institutional Korean investors a new product named Pru Global REITs Fund of Funds, which invests in global real estate securities including REITs and stocks of real estate investment companies.
Pru Global REITs Fund of Funds will be managed by Prudential Asset Management and sub-advised to Prudential Real Estate Investors in the
Pru Global REITs Fund of Funds invests in global real estate securities with high growth potential and favourable long-term outlook.
Despite its rapid growth, market capitalisation of real estate securities market is only about 5% of the total real estate market and less than 3% of public equity market.
In addition, the product offers Korean investors effective global diversification with low-correlated investment regions and investment assets, and its dividend income may offer investors a potential hedge against inflation.
PREI, a sub-advisor of Pru Global REITs Fund of Funds, has more than 36 years of experience investing in real estate and offers a broad range of investment opportunities and investment management services in the
PREI had $US35.8 billion in assets under management as of December 31, 2006, and is ranked among the largest real estate investment managers in the world.
The product is an onshore fund incepted in
Regular Savings Plan investment is possible and the product does not have minimum investment amount.
In terms of FX, currency risk is hedged within the fund, minimizing the risk of FX volatility.
“Asset management of Pru Global REITs Fund of Funds is sub-advised to the asset manager of Prudential’s WIP Global Real Estate Securities Fund, a well-received fund launched in March 2005.
“Pru Global REITs Fund of Funds has been developed as one of the series of onshore non-Korean asset class funds. It will be an effective product for Korean investors who seek to create global investment portfolios,” Prudential Asset Management chief executive Lee Chang-hoon.
Australian Property Journal
