PublicMutual
Public Bank’s wholly-owned subsidiary, Public Mutual announced that the company has increased the fund size of its recently launched Public Far-East Property & Resorts Fund (PFEPRF) to 3.375 billion units due to the strong demand from investors.
Chief Executive Officer Yeoh Kim Hong said this is the second time the company has increased the fund size of PFEPRF. “The fund received good response from investors as it enables them to invest in a dynamic and diversified manner across the different types of properties and across multiple markets and economies in the Asia Pacific region,” she explained.
PFEPRF which was launched in July 2007, is an equity fund that seeks to achieve capital growth over the medium- to long-term period by investing in companies that are principally engaged in property investment and development, hotel and resorts development and investment, and real estate investment trusts (REITs) in domestic and regional markets.
“Up to 80% of the fund’s net asset value (NAV) can be invested in selected regional markets which include Japan, Australia, Hong Kong, China, Singapore, Taiwan, Philippines, Thailand, New Zealand, Indonesia, South Korea and other approved markets,” she said.
Yeoh added that the fund is suitable for investors with moderate risk-reward temperament who wish to participate in the long-term growth potential of real estate investments in the region. She also added that property stocks and REITs in the region are expected to offer promising returns over the medium- to long-term period due to resilient GDP growth, rising disposable income, high savings rate and stable interest rate in the region.
“Easier foreign ownership rules in some countries have encouraged foreign buying of properties which have further propelled property prices. In Singapore, for example, foreign share of real estate purchase has increased from 9.9% in 1999 - 2001 to 28% in 2006. As for Malaysia, the recent relaxation of foreign real estate ownership rules is a positive driver for the local property market,” she continued.
PFEPRF is distributed by Public Mutual’s unit trust consultants.
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