Published 8 July 2008
Wellington-based Kinloch Funds Management Ltd launched its Emerging Markets Property Securities Fund today. The New Zealand-registered unlisted open-ended fund will focus on investing in listed property securities & property companies in emerging property markets.
Joint managing director Mark Petersen said the Kinloch fund was the first of its kind in Australia or New Zealand. He said the rationale for investing was compelling, with the growth across emerging markets such as China, India & Brazil forecast by the International Monetary Fund to grow by 6.5% in the next 2 years, compared to 1.3% forecast in developed countries.
"We expect investors to be attracted to the fund, not only by these growth forecasts but also by the market performance in recent years, law reforms and the benefit of further diversifying investment portfolios."
The fund will mostly invest in large listed property companies in emerging-market countries and will be benchmarked against the Standard & Poors/Citigroup Emerging Property Index, which includes 108 property companies in 17 emerging-market countries. These companies have a combined market capitalisation of $US175 billion ($NZ220 billion). By comparison, the total market capitalisation of the NZX is $NZ60 billion.
To meet the S&P criteria, the companies must have a minimum $US100 million free float and have annual turnover on a recognised stock exchange of at least $US50 million/year.
ASX-listed MacarthurCook Ltd, which acquired a 33% interest in Kinloch in January, will select & manage the underlying investments in the fund, which Kinloch will manage.
Kinloch’s existing shareholders & directors are Mr Petersen & Neville Todd, of Wellington. Craig Dunstan represents Macarthur Cook.
Website: Kinloch Funds Management
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Attribution: Macarthur Cook release, Kinloch statement, story written by Bob Dey for this website.