Sydney-based fund manager Premium China Funds Management is launching a second managed fund, Premium SAM Asia Property Fund, to add to its existing Premium China Fund.
The new fund will invest in undervalued property development and investment companies in 10 countries in Asia Pacific (ex Japan), including China, Hong Kong, Taiwan, Thailand and Korea.
As with its existing fund Premium China Fund, which launched the fund in October 2005, the new fund will be managed by Hong Kong-based fund manager Value Partners.
The plan is for the new fund, which is targeting $100 million in funds under management over its first year, to be distributed to planners via the major platforms, as is the Premium China Fund currently.
Executive director Simon Wu said the new property fund would “provide investors with an investment solution that is currently not available in the Australian market”.
“There was no value style China fund in Australia, so we introduced the Premium China Fund in 2005, and currently there is no Asia property fund, and so we will be introducing the Premium SAM Asia Property Fund.”
Wu said the new fund would invest in undervalued listed property development and investment companies covering the broad range of property and real estate, as opposed to investing in direct assets.
“The reasons for the property fund are to allow investors in Australia to benefit from the phenomenal growth in urbanisation in China.
“Demand is outstripping supply, as 400 million people need to be housed at least in the next 15 years in China, which is equivalent to 100 Sydneys.
“Other Asian countries are experiencing the similar phase,” he said.
