A US dollar-backed investment fund was recently introduced by the insurance company, Manulife Philippines. This fund allows individual investors to invest in institutional assets, making it possible to place investments even without the budget. Inquirer Business reported that the portfolio consists of real estate properties listed on an exchange and scattered across the Asia-Pacific region.
The Asia Pacific Property Income Fund (APPI) is Manulife's investment arm and is opening investors to exposure to REITs located in different Asian countries and Australia. In Asia, the countries reportedly involved are Hong Kong, Malaysia, Singapore, and Thailand.
The REIT (Real Estate Investment Trust) gives the investors options for funding. They may choose to invest in projects which are already finished and are in business (residential buildings, offices, hotels or shopping malls). These investments were done to create interest in funding capital through a targeted distribution of these investment funds.
Real estate funding has been big in the Asia Pacific region, visibly shown by how global property investment manager TH Real Estate opened a fund. The investment firm has ready funding in the $2 billion range, according to Mingtiandi. It had received initial funding from its parent company, the Teachers Insurance, and Annuity Association of America (TIAA) worth $200 million.
This fund is directed towards cities such as Brisbane, Seoul, Singapore, Sydney, and Tokyo, and has been dubbed a "global resilient cities" funding--the fourth to carry such a name. The investment is directed towards "future proof" cities such as those previously mentioned, the company released in a statement.
The fund aims to reward investors which had been looking at significant investments to put their money in. It will return their money through a long term period with seven to 10 percent of the funding returning per annum. The investment manager hopes that this would be enough to raise $2 billion for use in other investment purposes.
These and REITs are good investment funds to diversify portfolios. In the case of REITs, it works in a similar way to mutual funds. Investors that aren't as well-off as institutional ones will get the chance to make their hard-earned money work, putting them in assets that wouldn't be affordable in case they decided to invest all on their own.
APPI, according to Manulife Philippines chief executive Ryan Charland, is a good investment fund with the capability to help hedge against inflation. Customers will be able to grow their investments more, have life insurance, and can also enjoy semi-annual payouts.
