Manulife launches REIT fund

Manulife Asset Management and Trust Corp. (MAMTC), the asset management arm of the Manufacturers Life Insurance Co. (Phils) Inc., recently launched a new fund which allows clients to invest in real estate investment trusts (REITs) in the Asia-Pacific region.

The fund, named as the AsiaPacific REIT Fund of Funds, seeks to achieve long-term capital appreciation and generate income by investing mainly in exchange-listed REITs and other allowable investments in the region, MAMTC said.

MAMTC president and chief executive officer Aira Gaspar said the company believes that investing in the growing REIT market would help diversify the portfolio of its clients.

“The securitization of the real estate market is still in its growth phase, underpinned by the increasing trend of investors embracing cross-border assets, as well as the growth in listed REIT markets over the past 15 years across Singapore, Hong Kong and Australia,” Gaspar said.

“We believe that investments in REITs can continue to provide diversification benefits to traditional portfolios consisting of fixed income and equity,” she added.

The fund’s lead portfolio manager, Hui Min Ng, said REITs also provide investors an opportunity to grow their money given the positive prospects of the property and tourism market in the region.

“We are positive on the rental outlook for office, retail and hospitality segments in Asia REITs. Office assets supply in Singapore and Australia are reaching full occupancy with limited or no new completions in the short to medium term. Tourism is expected to pick up in Hong Kong and Singapore which could boost retail sales and demand for hotel accommodation,” Ng said.

“All these mean commercial landlords and hoteliers could have greater command on rental rate revisions over the next few years, and provide REIT investors with steady income growth,” he added.

Hui Min Ng is supported by an equity team in Singapore, as well as a network of research sharing offices across Asia, according to MAMTC.

“The investment process is grounded in rigorous bottom up fundamental research that helps identify quality REIT opportunities in Asian markets with strong fundamentals,” the company said.

“The fund’s total return objective coupled with the investment team’s expertise in security selection and risk management provides the potential for steady income distribution and longterm growth,” it added.

The Asia-Pacific REIT Fund of Funds is available in both US-dollar and Philippine-peso denominations.