Investors interested in REITs outside the Philippines can invest in UITFs from Manulife Investment Management of which there are two: Manulife Asia Pacific REIT Fund of Funds and Manulife Global REIT Feeder Fund.
For the Manulife Asia Pacific REIT Fund of Funds, its average annualized dividend yield is 4.71%, with a management fee of 1.75%. For the Manulife Global REIT Feeder Fund, its average annualized dividend yield is 4.55% with the same 1.75% management fee. Note that the above yields are already net of fees.
Their respective yields clearly demonstrate the impact of management fees on dividends. On the other hand, you do get diversification since these funds invest in many types of REITs accross many countries. You also get professional fund managers looking after the REIT portfolio. All that for a low minimum investment of P1,000.
These funds receive dividends from the REITs and in turn distribute them to their unit holders. The Asia Pacific Fund pays dividends bi-annually every January and July while the Global Fund pays monthly dividends.
The top 5 REIT holdings in the Asia Pacific Fund include:
- Link REIT
- CapitaLand Ascendas REIT
- CapitaLand Integrated Commercial Trust
- Keppel DC REIT
- Frasers Centrepoint Trust
The top 5 REIT holdings in the Global Fund include:
- Prologis
- Simon Property Group
- Welltower
- Digital Realty Trust
- Ventas
Personally though, I am hesitant to invest in these REIT Funds. The primary reason being the high management fees being charged. Also, my portfolio is already biased towards REITs that investing in these funds for diversification’s sake would not make much sense. Finally, I hold a bullish outlook on our top local REITs and would rather buy more of their shares rather than invest overseas.
However, each investor is unique and some may find value from professional fund management. Investors who hold a negative outlook on our local REITs and prefer the relative stability of foreign REITs would also find the 2 Manulife Feeder Funds worthy candidates for inclusion in their portfolio. Do read their respective prospectus and fact sheets before investing.
philreitinvestor.com 