Anatomy of the return: Benchmarking Asia Pacific’s core open-end funds
Historically, institutional investors looking to invest in core open-end vehicles have had limited opportunities in parts of the Asia Pacific region. With the increasingly-global nature of real estate and the growth of local capital, however, demand has been growing for core investment options in the region. The launch of several new core funds in Asia in recent years is testament to this and could be a sign of changing perceptions in the region.
The growing appetite for core funds in Asia
When considering the factors that have helped drive demand for core investment options in Asia Pacific, it is worth making the distinction between internal and external demand drivers.
From an external perspective, real estate is becoming increasingly global in nature as an asset class, partly because of the international mandates of many of the world’s largest sovereign wealth and pension funds. An increasing awareness of the potential diversification benef