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Henderson fund opens door to Asian property

Henderson has introduced an offshore Asia-Pacific property equities fund to be managed by Chris Reilly based in Singapore.

The fund will invest in quoted equities of companies which derive the main part of their revenue from the ownership, management or development of real estate throughout Asia and the Pacific and will take advantage of rising commercial asset values in the region as domestic consumption improves.

It will be a dollar-denominated product benchmarked against an average of the FTSE European, North American and Asian total return property indices. It will exclude stocks that derive more than 40 per cent of their earnings outside Asia and will cap the weight of any stock at 7.5 per cent.

Reilly says overseas Reits are bringing liquidity, transparency and efficiency to the market.

The fund is designed to appeal to total return requirements rather than investors wanting regular and predictable income. It will be flexible, with no particular reference for yield or growth.

It will complement the firm’s global property equities and pan-European property equities funds in its Luxemburg-based Sicav. Minimum investment is 1,400 and charges are 5 per cent initial and 1.2 per cent annual.

Reilly says: “There are great opportunities in Asia-Pacific markets. In weak property markets, a focus on dividend yields may provide better returns. But a preference for growth stocks may prove more rewarding in rising property markets.”

Max Horne Financial director Max Horne says: “There has been a lot of activity in Asia and the Pacific, particularly in Hong Kong and Shanghai. On the commercial property side, anywhere like this where there is potential to make money is a good bet for investors.”

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