SINGAPORE--(BUSINESS WIRE)--Aberdeen Asset Management Asia Limited (“Aberdeen Asia”), the Asian arm of Aberdeen Asset Management, has launched its third closed-ended property Fund of Funds which will target institutional investors.
The Fund will seek to create a well-diversified portfolio of best-in-class property funds in the region, including mature markets like Japan, Australia and Singapore, as well as emerging ones like China and India. It will invest across the risk spectrum from core to opportunistic strategies. The target gearing is 50-60% and the Fund aims to deliver 13-17% in returns per annum.
Aberdeen is looking to raise USD 300-400 million from investors worldwide. This is in addition to the c.US$1 billion it already manages and advises in Asian property, having launched its first Asian fund of funds in 2006. Since then, it has gone on to raise a second such fund, as well as a number of property multi-manager segregated mandates.
The Fund will be managed by a team of five professionals based in Singapore under Puay Ju Kang, Head of Property – Asia Pacific. According to her, the same rigorous investment approach will be employed as for existing funds, with a strong research-led process. Her team will identify the best strategy for each market depending on its property cycle, and then the right manager and structure (be that funds, club deals or joint ventures).
Aberdeen has a significant network in the region, through which it expects to gain strong access to opportunities. For example, recently its property team forged a joint venture with GE Japan Corporation to invest in the Tokyo residential market. The ability to make such connections is expected to be a factor in overall returns. For existing Asian property products, last year saw strong performance, with returns ranging from 13.3% to 25.7%.
The Asian team is also a valuable part of Aberdeen’s global property multi-manager platform. Jon Lekander, Global Head of Indirect Property, comments:
“Given Asia’s growth potential, it’s essential we have a presence in the region, both to meet demand for dedicated products as well as for global ones, where a regional element will greatly improve the overall risk-return profile. With this latest product, we further affirm our belief in the investment opportunities in Asia and our ability to make the best of them.”
Hugh Young, Managing Director of Aberdeen Asia adds:
“Having built a substantial specialist equity and now a growing fixed income business over the past twenty years, property stands as the next asset class that is ripe for expansion. We’ve already made strides and have high hopes that with this launch our diversification can successfully continue.”
About Aberdeen
Aberdeen Asset Management is an independently-run asset manager listed on the London Stock Exchange since 1991, and operating from 30 offices in 23 countries. The company invests on behalf of institutional and wholesale clients, primarily in equities, fixed income, alternative investment strategies and property. As at 31 March 2011, the Group had C$32.0 billion under management in property invested in a broad range of real estate direct and multi-manager strategies, out of C$282.5 billion in total assets. It manages indirect property assets from a number of offices globally, with Asian investments under Aberdeen Asia in Singapore. Aberdeen Asset Management Inc. was named the fastest growing manager of Canadian pension assets in the $1.0-10.0bn category during 2010 by Benefits Canada magazine, an industry-leading publication for pension plans and benefit providers1.
This press release does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. This document does not constitute investment advice and Aberdeen Fund Distributors, LLC (“AFD”), is not holding itself out as engaging in the business of advising others as to the investing in or the buying or selling of securities. AFD is registered as an Exempt Market Dealer in all provinces and territories in Canada and also operates pursuant to the International Dealers Exemption in all provinces in Canada. AFD Member FINRA, is also not in the business of advising others as to the investing in or the buying or selling of securities except in those provinces and territories in Canada in which it is duly registered as a dealer or in which it is entitled to rely on an exemption. Neither AFD nor any of its agents have given any consideration to nor have they made any investigation of the investment objectives, financial situation or particular need of the reader, any specific person or group of persons. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader, any person or group of persons acting on any information, opinion or estimate contained in this document.
Property Investments may carry additional risk of loss due to the nature and volatility of the underlying investments and may not be available for investment by Canadian investors unless the investor meets certain regulatory requirements. In considering the prior performance information contained herein, potential investors should bear in mind that past performance is not necessarily indicative of future results, and there can be no assurance that such investments will achieve comparable results.
Prior to making an investment, prospective investors should carefully consider all the information in the Fund Documents. Investments are speculative by nature and there is a possibility of partial or total loss of invested capital. Investors should not subscribe to or invest unless they can readily bear the consequences of such loss.
The value of an investment may go down as well as up and involves various risks and investment considerations, some of which are highlighted below. The risk factors described herein are not intended to be exhaustive.
Certain property funds and property investment strategies may have no operating history.
Real estate investments are typically illiquid and the ability to diversify investments in response to changes in economic and other conditions is limited. Property values can be affected by a number of factors such as the economic climate and property market conditions where investments are located, interest rates, and investment regulations.
1: Benefits Canada, May 2011