Here, he calls attention to the FTSE ST All-Share Real Estate Investment Trusts Index (FSTREI), which has underperformed the broader Singapore market since the start of 2020.
With the cut-off yield on Singapore’s latest round of six-month Treasury bills (T-bills) down 21 basis points (bps) to 3.13% on Aug 29, Bank of Singapore (BOS) senior equity research analyst Andy Wong says investors should “segue” into Singapore-listed REITs (S-REITs) in their hunt for yield.
Speaking at BOS’s S-REITs outlook event on Aug 29, titled “A Turning Point”, Wong says investors should be prepared to reposition their portfolios, as yields from T-bills will fall in tandem with rate cut expectations for the US Federal Reserve. “There’s definitely reinvestment risk surrounding some of these short-tenor instruments as well,” says Wong to clients and investors at the SGX Auditorium.
