The FINANCIAL — According to Dow Jones, ING Groep NV's (ING) asset management unit February 25 launched a new Asia real estate fund in Hong Kong that invests in listed real estate securities across the region.
Most of the portfolio will be invested in real estate companies and real estate investment trusts, ING said. The fund is initially being offered only to retail investors in Hong Kong, but ING is looking into offering it in other regional markets.
Portfolio manager Justin Pica said the sector is poised to benefit from continued solid economic growth in Asia. He said Asian real estate markets are less mature and thus have greater scope to grow.
Singapore and Hong Kong listed real estate prices are expected to increase by 61% and 46%, respectively, through 2013. Moreover, real estate has a low correlation to equities and bonds, Pica said.
ING Investment Management currently manages more than US$2 billion in real estate portfolios in Asia.
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