Cohen & Steers, a top US asset manager, sees opportunity. Asia-Pacific real estate, especially listed property, should do well. The global utility sector also offers good returns. This is despite the global economic slowdown caused by US tariffs.
Cohen & Steers President and Chief Investment Officer Jon Cheigh spoke on August 7. He said the retail market in Hong Kong looks promising. Singapore’s office and healthcare sectors are also attractive. Australian, South Korean, and Japanese housing markets are expected to perform well.
Cheigh noted that US markets outperformed most others recently. However, he expects this trend to reverse. He predicts lower investment gains from the US in the next five to ten years. Other regions, like Asia, will likely see greater gains.
Valuations outside the US are more appealing. This makes them a more attractive investment.
Cohen & Steers manages real assets and alternative income. As of July 31, they managed $88.6 billion. This is a 4.7% increase from the previous year. They manage about $14.7 billion for APAC clients. These clients are in countries like Japan, Taiwan, South Korea, Singapore, Malaysia, New Zealand, and Australia.
Last month, the firm hired Andrew Shin. Shin has 20 years of experience in institutional investment. He will lead institutional distribution in South Korea. He will also help grow institutional business across Asia.
Cohen & Steers was an early investor in listed real estate. They later expanded into listed infrastructure. They also invest in natural resource stocks, commodities, and preferred securities.
Cheigh finds Hong Kong and Singapore real estate attractive. These markets were hurt by China’s slowdown over the past five to six years. Their current valuations are very good. He sees signs of recovery beginning.
China’s stimulus measures will help. Increased government spending will boost Hong Kong retail property. It will also support Singapore’s office and healthcare sectors.
Cheigh does not expect China to return to 6-8% growth. However, a rebalancing and stimulus cycle will benefit Hong Kong and Singapore.
South Korea’s office market is very strong. Cheigh called it one of the best globally. The country’s focus on corporate governance will attract more foreign investment. This policy will bring in global capital. It encourages ongoing investment. This makes Korea more interesting for investors like them.
Cohen & Steers favors Tokyo’s hotels and offices. Japan’s low interest rates make these appealing. The Bank of Japan raised its policy rate in January. It is now at 0.5%, the highest since 2008. They have kept it there.
Japan is a rare developed market with very low rates. Cohen & Steers likes this for growth prospects.
Australia’s residential market is also promising. There is a shortage of housing there. Cohen & Steers owns companies benefiting from increased home building. They also benefit from condo sales.