METZLER/PAYDEN LAUNCHES INTL REAL ESTATE FUND
Los Angeles, February 23, 2007 – Metzler/Payden,
LLC announced today that it has launched the Metzler/Payden
International Real Estate Fund (MPREX). The fund will
invest in worldwide real estate securities, including REITs
(Real Estate Investment Trusts).
“We are excited to be collaborating on another product
with Metzler,” said Chris Orndorff, CFA, Managing Principal,
and co-portfolio manager of the fund. “The International
Real Estate Fund brings together the best ideas from our investment
teams in Los Angeles, Seattle, London, Frankfurt, and Tokyo.”
“The fund is an excellent way for investors to gain
exposure to the exciting developments in international real
estate markets,” said James Neal, CEO of Metzler North
America and co-portfolio manager of the fund. “While
REITs have been around for decades in the US, they are just
in their infancy in many overseas markets.”
Since 2003, the global REIT market has more than doubled to
over $733 billion. Worldwide institutional grade real estate
assets are approximately $14.5 trillion. The firm views the
outlook for the international real estate market as continuing
to grow based on strong fundamentals. It also believes that
international real estate securities can provide investors
with portfolio diversification, low correlation with other
indices and asset classes, and lower volatility than equities.
“Investors need to realize that real estate is a very
local market. Just because US real estate is peaking, does
not at all imply that the same environment exists overseas,”
said Orndorff. Neal adds that the commercial real estate market
in the UK differs markedly from the markets in other countries
such as France or Australia. He also notes that disparities
may exist in demand for the various types of commercial space
such as office and retail space and warehouses.
Orndorff pointed out that opportunities in international real
estate include Japan, where “fundamentals are quite
good.” He also noted that office vacancy rates in Tokyo
are at the lowest level in 20 years, and rents are rising.
Orndorff adds, “And, there are other markets just as
interesting to us as Japan.”
About Metzler/Payden, LLC
Metzler/Payden, LLC (metzlerpayden.com),
a 50/50 joint venture between independent partners Metzler
Bank and Payden & Rygel, has more than $2 billion in assets
under management. Headquartered in Frankfurt, Metzler Bank
(metzler.com)
has been advising clients on their overall investment strategies
for more than 325 years. The firm, the oldest German private
bank owned exclusively by the founding family, specializes
in a wide range of global balanced and European products.
Founded in 1983, Payden & Rygel (payden.com),
with $54 billion in assets under management, is one of the
largest independent investment managers in the U.S. The firm,
headquartered in Los Angeles with offices in London, Dublin
and Frankfurt, is the advisor to Paydenfunds, a family of
no-load, low-expense stock and bond mutual funds.
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