ING's property fund

Investment funds are creating special sub-funds that focus purely on the rapidly growing and significantly profitable real- estate and construction market. Recently, ING TFI decided to follow the trend, and it has created a new Construction and Real Estate Plus (CREP) sub-fund.

"The construction-market boom is just beginning in Poland and we believe that [this] will continue for at least five more years," said Leszek Auda, who will manage the construction sub-fund for ING.

CREP is a balanced sub-fund, with the allocation of its portfolio divided into 50 percent of shares and another 50 percent in debt instruments. Its sub-fund characteristic allows it to invest from 30 to 70 percent of assets into shares as well as debt instruments. This structure means it can amortize possible changes in the value of shares of real estate and construction companies. According to ING TFI, the new fund will invest in companies that focus on construction investments, development companies, and building-material manufacturers.

During its first three weeks of operations, the assets of the new sub-fund have grown to zł.368 million. "Our new product is designed especially for advanced investors, with a long-term, at least two- to three-year investment horizon and who are not discouraged by a high risk level," said Sebastian Buczek, the president of ING TFI.