Prudential Investments has launched the Prudential Select Real Estate Fund, offering investors the potential to generate capital appreciation and income by investing primarily in publicly traded equity securities of real estate companies.
Prudential Investments is the mutual fund business of Prudential Financial.
The fund invests in a concentrated portfolio of real estate securities in which the portfolio managers have a high level of conviction. Prudential Investments believes that this approach potentially leads to higher alpha opportunities over a full market cycle than traditional real estate mutual funds. At least 80 per cent of the fund's investable assets are invested in equity and equity-related securities of real estate companies (real estate investment trusts or REITs).
The fund is sub-advised by Prudential Real Estate Investors (PREI), which has USD55.8 billion of assets under management. PREI also sub-advises the Prudential Global Real Estate Fund, the Prudential US Real Estate Fund and the Prudential International Real Estate Fund.
"PREI has successfully managed our Morningstar 5-star rated Prudential Global Real Estate Fund since 2007 and it has grown to be one of the largest real estate mutual funds at USD3.5 billion in assets," says Stuart Parker, president of Prudential Investments. "With this new offering, investors can now invest in a concentrated portfolio that is comprised of what PREI believes are prime opportunities for capital appreciation within real estate securities markets around the world."
The portfolio management team, led by Marc Halle, managing director at PREI, averages over 23 years of investment experience. The securities team is located in the US, Europe and Asia and is integrated into the substantial private side real estate activities of PREI's global real estate investment management business.