EXECUTIVES of an insurance firm said the real estate investment trust (REIT) is a good investment in the long run, especially as the property sector is expected to rebound after the pandemic.
To seize the potential growth opportunity in real estate industry, Manulife Investment Management and Trust Corp. recently launched its “Global REIT Feeder Fund,” the insurer’s income-paying unit investment trust fund that aims to provide income and capital growth through investments in global REITs.
The fund can be availed in Philippine peso and the US dollar share classes for as low as P50,000 and $1,000, respectively.
Manulife IM Philippines President and CEO Macaria T. Gaspar said the objective of the fund is to give the maximum value by enabling an investor to maximize total returns by investing in a collective investment scheme in Manulife’s global REIT fund. Gaspar added the target fund will invest at least 70 percent of its assets in REITs listed and traded globally. Further, Gaspar said the client has the option to invest up to 30 percent of its assets in real estate securities besides REITs and/or cash and cash equivalents.
“Global REITs provide an alternative source of income, which has become even more important with interest rates expected to remain low for longer. They typically generate stable rental income, enabling attractive dividend payouts. At the same time, their historically low correlation with other major asset classes can provide diversification benefits to an investment portfolio,” Gaspar said.
Meanwhile, the Asia Pacific Real Estate Association CEO Sigrid Zialcita said they are bullish on REITs in the Philippine market.
“Although REITs were not spared from the volatility of the market when the Covid-19 pandemic struck, the market stabilized and achieved 15-percent market return,” Zialcita said.
“We are also bullish on the Philippine market because it offers very good returns, It will benefit a lot when the government can provide adequate support,” Zialcita added.
She said there is a need to educate the people on the advantages of investing in REITs and make sure the investors will get the best information.