Global property tipped to perform in 2007
ING is predicting another year of strong returns from global property.
The prediction has come on the back of the company reporting the ING Global Property Fund has generated a 44.9 per cent return in 2006, with ING Clarion Real Estate Securities managing director Ritson Ferguson attributing the result to strong fund flows, merger and acquisition activity and new company formations.
“In our view, real estate stock valuations are not stretched,” he said.
“In a market offering around five per cent for long-term bond holders, and where most investors’ stock market return expectations are in the vicinity of 10 per cent, a prospective real estate return of eight to 12 per cent offers an attractive relative return profile.”
Ferguson said he expected the momentum for real estate investment to continue into 2007 as the listed real estate sector continued to gain acceptance as a viable asset class within diversified portfolios.
AUTHOR
Mike Taylor
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
The alternative asset manager has expanded its Singapore office with a head of Asian distribution, representing a “critical step” for the Asian business, where it is seeking to launch new offerings.
