ING Investment Management, the asset manager of ING Mutual Fund, today launched a global real estate fund. The fund will offer domestic retail investors the chance to invest in real estate markets in different countries.
The ING Global Real Estate Fund, which closes on December 14, will invest in the Dutch financial conglomerate’s another fund — ING Global Real Estate Securities Fund, registered in Cayman Island. The minimum investment in the fund is Rs 5,000.
“The Cayman fund will be managed by ING Clarion Real Estate Securities, the wholly owned US subsidiary of ING for real estate-related investment management business. We could have invested directly in ING Clarion’s fund. But if we had done that we would have to pay a 30 per cent withholding tax that would reduce the returns on investment. Hence we have chosen the feeder fund route by setting up ING Global Real Estate Securities Fund in Cayman Islands,” said Vineet K. Vohra, chief executive and managing director of ING Investment Management (India).
The Cayman fund will invest in real estate investment trusts (Reits) and real estate operating companies across the globe.
“ING Clarion’s fund at present has a 36 per cent investment exposure in the US, 43 per cent in the Asia Pacific region, 15 per cent in Europe and 6 per cent in developing countries,” Vohra said.
While investment in Reits generates a steady flow of income in the form of dividends, investment in real estate operating companies, such as property developers, is meant for growth.
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