Fund Idea Fund Friday: Looking to REITs for steady income? He | FSMOne SG - Research Highlights

Fund Idea

Fund Friday: Looking to REITs for steady income? Here’s one fund to consider.

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• REITs have pretty resilient so far, despite the negative Covid-19 impact. Overall leverage ratios for REITS were at or near the lowest on record, and many REITs lengthened the maturities of their debts to reduce the risks of having to refinance during adverse market conditions.

• This is particularly true for Asia Pacific Reits. Not only are their healthier gearing ratios signifying strong balance sheets, the strong rebound in M&A activities across Australia, Hong Kong and Singapore are pointing to growing business confidence as well.

• Amidst the backdrop of a favourable economic outlook ahead, we would like to highlight our recommended fund for Asia Pacific REIT: Manulife Global Fund - Asia Pacific REIT Fund.

• We particularly favour the Manulife APAC REIT Fund for its heavy exposure to Singapore REITs. While Singapore has fallen back into Phase 2 due to the recent clusters, its vaccination rollout continues to ramp up smoothly, leading to an inevitable reopening once the majority of its citizens are well-inoculated.

• For investors looking for income returns in a yield-starved market, APAC REITs are an attractive option to consider – both as a strong recovery play, and for future growth opportunities.

: Read the full article here
: Manulife Global Fund - Asia Pacific REIT Fund