Rreef plots mainland expansion
Rreef Alternative Investments, the world's largest alternative investment manager, hopes to expand into the mainland with initial targets in the real estate and infrastructure sectors.
'We want to move into China's market as quickly as possible and we will start by focusing on real estate and infrastructure sectors,' said Asieh Mansour, Rreef's chief economist and strategist.
'China has been growing quite rapidly and its huge population and increasing numbers in the middle class are all among major factors attracting us to set up business there.'
The investment firm did not provide a timetable for the mainland expansion or cite the reasons for picking the two sectors.
A source told the South China Morning Post that the company had already sent 'an acquisition team' to the mainland to 'monitor the market'.
'They will be monitoring the performance of the four primary alternative assets [real estate, infrastructure, private equity and hedge funds],' the source said.
Rreef, the global alternative investment management arm of Deutsche Bank's asset management division, managed assets worth 68.2 billion (HK$777.51 billion) worldwide by the end of September.
Real estate, its core business, accounted for Euro58.7 billion followed by infrastructure with Euro5.9 billion, hedge fund with Euro3.1 billion and private equity with Euro500 million.
Mr Mansour said that real estate, infrastructure, private equity and hedge funds had delivered higher returns than traditional investments such as stocks and bonds in the past decade.
A recent survey from Watson Wyatt revealed that about US$200 billion flowed into alternative assets in 2005.
From this year to 2010, alternatives would account for 10 to 20 per cent of the world's total institutional investment, Mr Mansour quoted a Russell's survey as saying.