Value Partners Group has announced the launch of the Value Partners Japan REIT fund, the first of its kind in Hong Kong.
The Securities and Futures Commission authorised fund aims to provide long-term capital appreciation and income generation through investment in real estate investment trusts (REITs) listed in Japan.
It will have a JPY share class, as well as USD-hedged, HKD-hedged, RMB-hedged and SGD-hedged share classes.
The Hong Kong-based asset manager said they are collaborating with Japan’s Daiwa Asset Management to deepen their understanding of the market.
“Daiwa’s expertise and experience will certainly enhance our ability to deliver a consistent and attractive investment outcome for our clients,” the company said.
The Japanese REIT market is the biggest in Asia, with a market capitalization of over ¥15trn ($96bn), with an average yield of about 4% per annum.
Due to low interest rates in Japan relative to the US, Value Partners noted that USD-hedged investors can potentially earn additional income from the short-term interest rate differential.
“Japan REITs, on a USD-hedged basis, have provided a strong risk-adjusted return historically and have relatively low correlations with other asset classes,” said Ricky Tang, head of client portfolio management at Value Partners Group.
“Looking forward, the strong momentum of Japan’s economy could provide support for property prices, which could lead to potential capital gains for REITs.”
Headquartered and listed in Hong Kong, Value Partners Group has $5.3bn in assets under management, with offices in Shanghai, Shenzhen, Beijing, Singapore and London.
