06 May 2020

Eastspring Investments (“Eastspring”), the USD 241 billion Asian investment management arm of Prudential plc, is distributing its new Asia Real Estate Multi Asset Income (AREMAI) strategy with a regional distributor in Singapore and Hong Kong. AREMAI focuses on maximising total returns over the medium to long-term with a regular income payout through an actively managed investment strategy across a range of diversified Asian real estate and/or infrastructure-related securities.

Xavier Meyer, Head of Distribution at Eastspring, commented: “With global interest rates likely to remain low, the search for higher yields will continue to drive capital to real estate. Real estate investments can help to diversify an investment portfolio and enhance its risk-adjusted returns, and we have seen increased investor demand for innovative solutions that offer good income and potential for capital growth. We look forward to growing our offering by providing investors with access to attractive investment opportunities in this asset class.”

The strategy adopts a unique multi asset investment approach which utilises various asset classes including equities, high yield bonds, infrastructure and investment grade bonds to fully capture the best growth and income opportunities in the real estate ecosystem.

“AREMAI offers investors the opportunity to capture the growth in the world’s fastest growing region. Asian real estate has typically delivered higher income than other Asian asset classes, and the region offers attractive, varied and unique real estate investment opportunities, driven by long-term structural trends such as urbanisation, population growth and the increasing wealth demographics of Asia,” said Joanna Ong, Portfolio Manager and Investment Director, Investment Solutions Team at Eastspring.

The impact of Covid-19 may have lasting ramifications on the Asian real estate sector creating long-term winners and losers. While retail and hospitality businesses have been hit, logistics and warehousing businesses may  benefit. A well diversified, active multi asset strategy can help navigate this difficult time, while seeking to generate sustainable income from real estate.

The multi asset approach offers the ability to invest through the various real estate market cycles and the flexibility to diversify across a variety of asset classes and across the property sector. Through a dynamic, risk-conscious asset allocation strategy, it provides investors with a less volatile portfolio as compared to a portfolio focused purely on property equities.

“At Eastspring, our investment and portfolio construction is underpinned by a strong culture of teamwork and collaboration to deliver the best expertise and insights for our clients. To construct an optimal portfolio, the strategy leverages the collective experience, specialised knowledge and shared strengths of three investment teams at Eastspring: the Investment Solutions team, the Equity Income & Property team, and the Asian Fixed Income team,” Ms Ong said

[1] AUM as at 31 December 2019.

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About Eastspring Investments: 

Eastspring Investments is a leading Asia-based asset manager that manages over USD 241 billion (as at 31 December 2019) of assets on behalf of institutional and retail clients. Operating in Asia since 1994, Eastspring Investments is the Asian asset management business of Prudential plc, an international financial services group, and has one of the widest footprints across the region*. We provide investment solutions across a broad range of asset classes including equities, fixed income, multi asset solutions and alternatives and are committed to delivering high quality investment outcomes for our clients over the long term. Eastspring Investments is a signatory to the United Nations-supported Principles for Responsible Investment (PRI), a voluntary program which encourages best practice in environmental, social and corporate governance issues.

For more information on Eastspring Investments, please visit: www.eastspring.com

*Eastspring Investments (excluding JV companies) companies are ultimately wholly-owned / indirect subsidiaries / associate of Prudential plc of the United Kingdom. Eastspring Investments companies (including JV's) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or with the Prudential Assurance Company, a subsidiary of M&G plc, a company incorporated in the United Kingdom.

 

 

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