However, an accelerated pace in vaccination has awakened the Real Estate Investment Trust (REITs) sector which is deeply undervalued at the moment.

As Global REITs surge higher in recent months, opportunity is presenting itself on a silver platter for both income and capital growth.

Is this resurgence temporary or will this morph into a secular trend?

How to benefit from the early stages of the real estate recovery?

Join us in knocking the doors of Global REITs as we discover these answers.

Investment Advisor

Standard Chartered Bank Malaysia

Portfolio Manager

Manulife Asset Management

Key Takeaways

We spoke to Joseph Marguy from Manulife Investment Management on how investors can benefit from the early stages of the real estate recovery.

In case you missed the webinar, here are some key takeaways:

1. High dividend yield – REIT offers attractive, stable and growing dividends relative to other yield-oriented securities. Dividend income is a vital source of total returns over the longer term.

2. Total returns potential – REIT has significantly outperformed the broader market through multiple market cycles. Moreover, it performs well in any interest rate environment and is a good hedge to inflation.

3. Portfolio diversification – Their comparatively low correlation with other asset classes helps to provide diversification benefits whilst improving risk-adjusted returns.

4. Attractive Valuations – Valuations appear compelling as REITs emerge from the ashes of 2020 and benefit from the current economy re-opening narrative. Furthermore, active management through stock selection within a Shariah framework has proven to be a value-added proposition to investors.

REITs expand beyond traditional residential, retail and office spaces to also include digital transformation theme such as data centres, 5G towers and e-commerce warehouses. In addition, an aging population globally helps to fuel growth in Healthcare REITs.

The development and growth of the new economy will continue with the acceleration of autonomous vehicles and internet-of-things (IoT) which will spur both specialized and industrial REITs to greater heights.

Manulife Shariah Global REIT  aims to capture these powerful secular trends and is suitable for investors who seek regular income and potential capital appreciation over medium to long-term (3 to 5 years).

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