SINGAPORE (June 30): UOB Asset Management (UOBAM) (Taiwan) announced on Tuesday that it has launched the United S-REIT Income Fund.
The fund is the first S-REIT fund in Taiwan. It seeks to offer opportunities for retail investors in Taiwan to invest in Singapore-listed real estate investment trusts (S-REITs).
The fund’s initial offering period (IPO) will close on July 24.
According to UOB Asset Management, the relatively low price co-relation of REITs with major asset classes makes REITs a good tool for portfolio diversification.
As at May 31, 2020, Singapore has one of the largest REIT markets in the world, with a total market capitalisation of $98 billion.
S-REITs have an average dividend yield of 7.2%, and an average 10-year annualised total return of 8.3%, which are among the highest in the global REIT market.
“S-REITs are attractive investments due to their strong fundamentals, including reputable sponsors, sound balance sheets and low debt levels. While their recent price performance was affected by the impact of the COVID-19 pandemic, their current valuations present buying opportunities and we are also optimistic of their long-term growth prospects,” says William Wang, CEO of UOBAM (Taiwan).
“Through the United S-REIT Income Fund, retail investors will gain access to quality S-REITs through a single fund. The Fund aims to provide a monthly dividend payout and we are confident that it will meet the demand from local retail investors for yield-based fund investments,” he adds.
