Principal Asset Management launches real estate fund for investors seeking portfolio diversification

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10 October, KUALA LUMPUR – Principal Asset Management Berhad (formerly known as CIMB-Principal Asset Management Berhad) (Principal) recently announced the launch of their new Principal Global Real Estate Fund (the Fund). Beginning 8 October, investors in Malaysia will have the opportunity to increase their investment potential and further diversify their financial portfolios with a fund that invests in real estate and commercial properties in locations around the world through security and bond investments.

The Fund offers investors a uniquely blended portfolio comprised of approximately 63% in global real estate investment securities (REITS), 15-35% in commercial mortgage-backed securities (CMBS) and at least 2% in liquid assets.   This combination cushions the impact of any unforeseen eventualities. The Fund seeks to increase investor investment potential, while limiting their downside exposure. This is a unique combination allowing investors to benefit from the growing popularity REITS have experienced in recent years for their strong performance in low-interest rate and volatile global market conditions; and from CMBS, historically known for strong yields without additional risk exposure.

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“We’re excited to offer Malaysians access to real estate investments to help them diversify their investment portfolios and provide the potential for attractive income and capital appreciation via the unique allocation to real estate equity and debt securities,” said Munirah Khairuddin, CEO of Principal Asset Management Berhad.

As a global asset manager, Principal combines its worldwide connections and expertise with local market insights to create a portfolio of properties that allows investors the ability to access a variety of property in markets around the world that are typically not prominently available to the private sector, such as hotels, data centers, health care and self-storage.

The fund will also invest in properties, such as apartment buildings, malls, shopping centers and much more. Through this Fund, investors are buying into real estate in major markets around the world, including Japan, Mexico, United Kingdom, Australia and the United States.

“This dynamic real estate strategy is different from anything currently available in the market.   We’re very pleased to partner with CIMB to help distribute this fund and provide our clients with another option to help them achieve their lifetime financial goals,” Munirah added.

Samir Gupta, CEO of Group Consumer Banking, CIMB Group, said, “For CIMB Bank, it is all about a compelling value proposition for our customers. To that end, the Principal Global Real Estate Fund is a strong complement to the suite of investment products on our wealth platform, which is carefully curated to cater to customers with different levels of risk appetite. Providing our clients with opportunities to invest in the global real estate market, among others, is an important diversification feature in our comprehensive suite of investment products like unit trusts and private retirement scheme to help customers grow their wealth.”

The Fund will initially be exclusively available via CIMB Bank branches nationwide. Learn more about the Fund at www.principal.com.my or visit your nearest CIMB Bank branch.

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