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GENERATE RELATIVELY HIGHER INCOME FROM ASIA REAL ESTATE
The demand for real estate as an asset class continues to grow which in turn will support the demand for real estate stocks and securities. Furthermore, real estate investments have typically delivered higher income than the broader based equity and bond
asset classes.
A good mix of real estate investments can offer a relatively stable income stream. Equally, the low interest rates and the moderate growth environment across the region will underpin the demand for Asia real estate.
RECEIVE ATTRACTIVE TOTAL RETURNS WITH LOWER VOLATILITY
Investing in different asset classes that do not move in the same direction at the same time can deliver attractive returns without much increase in risk. For example, equities typically rally when an economy is in an expansion phase whereas bonds are
favoured if a recession seems likely.
By combining equities (developer stocks and Real Estate Investment Trusts (REITs)), real estate bonds and listed global infrastructure in a single portfolio, the Fund can capture both
the growth and income components whilst managing the risks of each sub asset class through the economic cycles.
OPEN THE DOOR TO MULTIPLE OPPORTUNITIES
Evolving market trends are changing the way we live, work and play and driving the demand for development in different real estate segments such as retirement homes, student accommodation etc.
Rapid urbanisation and advances in technology are also compelling the rise of smart cities across Asia, creating the need for data centres, warehouses and flexible work spaces to name a few. Investors are thus able to get exposure to such niche sectors
through this Fund.
WEATHER CHANGING MARKET CONDITIONS WITH A UNIQUE APPROACH
A systematic and extensive in-house model that analyses over 2000 economic and market-related indicators directs a top down allocation process across the asset classes. The output of the model is further assessed on qualitative factors.
This process therefore measures the effectiveness of each asset class in varying market conditions. Such a dynamic approach facilitates investing throughout market cycles, ensures that the appropriate asset classes are tapped optimally and sets the stage
for more stable returns over the long-term.
Bloomberg, data as of end January 2021. Asia Real Estate Bonds and Asia Bonds represented by JP Morgan indices, Asia Pacific ex-Japan REIT index represented by S&P Asia Pacific ex-Japan REIT index, Asia ex Japan Real Estate
Equities represented by MSCI AC Asia Pacific ex Japan Real Estate Index, Asia Pacific ex Japan Equities represented by MSCI AC Asia Pacific ex Japan Index
Eastspring Investments, MSCI Indices from Thomson Reuters Datastream, data as of end December 2020. Composite is 50% Asia Pacific Real Estate Index + 50% JACI High Yield Index.
Bloomberg, data as of 27 January 2021
Eastspring Investments, January 2021
Source: Eastspring Investments. ^Existing Investments Funds building blocks include segregated mandates and 0% fee shareclass of the sub-funds of Eastspring Investments. The above is for illustrative purpose, it should
be considered as a recommendation to purchase or sell the securities.