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So we've been saying good housing data feeding the buying frenzy here in US markets but global real estate funds have also caught the attention of investors have already taken -- 3.3 billion dollars on track to take in ten billion this year so.
Where in the world outside of the US the best opportunities.
Joining oust Michael McGowan his portfolio manager for.
Forward international real estate fund Michael thank you so much for coming and I appreciated.
Let's look first of all like your fund which is done year over year were.
Europe about 15%.
Which is very very good.
But it is about half is as good as the stock market perform so what do you think of the performance of your front are you.
On track -- to it to keep up to keep up this pace for next series well.
I -- -- I think we're on track to having another good year there's a lot of us solid fundamentals on the ground in many real estate markets all across the world.
They don't always -- in sync with what you see in the US markets.
And we've seen a little -- -- on some of the some of the issues with Europe and China.
But on all -- looks good in the ground now you focus more on cities then you do one country's explain.
Right -- our find.
It's not a it's very actively -- not benchmark hugging.
So we've done is looked at what cities around the world we think are some of the key real estate cities and investors -- -- to investor invest in -- prosper over the years.
And these are -- and the cities -- gateway cities places like London.
Hong Kong Paris Tokyo.
And even some lesser known ones like Manila and call him for now sometimes -- -- these other countries that these cities are located are not doing too well but the city's.
Way outperform a country's right.
Yes that's very true and you know in Canada for instance Canada overall is very healthy.
But one area that we're particularly his -- -- and his -- western province of Alberta with the cities of Calgary.
And they're doing much better than Canada as a whole well clearly there boom towns because of because of oil etc.
Let's go look at -- countries and because one country that appeals to use the Philippines I'd like to know why.
Share well actually I just returned from a nine day trip to the Philippines this weekend.
And it affirmed what I might my thesis of investing there.
In that there's a lot of demand from an up and coming middle class.
It's a very young population one of the youngest ones in the world and a -- to stay that way for quite a few years -- a good working class hardworking making lots of money.
And -- try and improve the quality of life so we're investing in companies that own.
Income producing real estate such a shopping malls and office buildings and also some of the home builders there.
And in particular.
You one company relied a lot is this to land in landscapes.
It's a home builder than has properties.
That -- all different -- can segment all around the Philippines.
And were lucky to still gradually you're afraid it's got -- it's got a terrific growth rate here I we're we're limited on time so I just want to switch to -- chair to the reverse side of the equation which is countries that might be getting.
A little low taxes and short of -- did you countries that don't have a lot of -- young people that are ambitions every.
And of course something of countries in Europe.
Italy in particular is doing terribly -- now Spain also has very high unemployment among the young people would you avoid those countries like the plague.
Well we would look for opportunities but I think you're right in this case -- that we're not finding very many in Europe.
And the few that are there that that do have agrees decent growth profile or terribly expensive to us.
And another one would be Japan.
That -- a lot of interest in Japanese stocks I think there's some some good general opportunities.
But there's been a real sharp run up and Japanese reads in real estate developer stocks.
And we think it's gone a bit far and we've decided to wait this one out and look for better opportunities elsewhere.
Well Michael congratulations on your fund again it's it's doing gangbusters.
You can always expect a 30% gain in the Dow sometime you have to look for opportunities in real estate overseas and other things like that -- down forward international real estate fund.
Is -- name -- this one take a look lists thank you.
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