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Tapping into new and old economies

Increased industrial exposure:

  • Added Singapore and Australia industrial REITs last year, bringing industrial to the second largest sector in terms of exposure*.
  • 30% exposure to “new economy” industries like logistic warehousing and data centres.

Shifted from Hong Kong landlord holdings to Singapore retail:

  • To ride the potential recovery of the Singapore retail sector, particularly in neighborhood malls.
  • Exposure to Singapore: 59% of total holdings*.

Added to China property management companies:

  • Added selected China property management companies to the portfolio to capture visible and structural growth prospects.

*Source: Manulife Investment Management, as of 31 December 2020. Information about asset allocation is historical and is not an indication of the future composition.

  • Key markets like Singapore, Hong Kong, and Australia should avoid national lockdowns, given past policy learnings and experiences.
  • Successful vaccine rollouts could restore confidence in consumer and corporate spending.
  • Retail landlords likely to enjoy recovery in cashflows; industrial REITs to remain stable, growth to be boosted from accretive acquisitions.
  • Pronounced market volatility in 1H2020 opened opportunities for bargain hunting; invested in quality REITs which we believe should rebound strongly as growth resumes.
  • Fund captures opportunities in the new normal; exposure to industrial REITs with high cashflows visibility, as well as selective recovery plays in retail and hospitality sectors.

Portfolio sector allocation

Source: Manulife Investment Management, as of 31 December 2020. Information about asset allocation is historical and is not an indication of the future composition.

  • Major Asia ex-Japan REITs markets started 2021 on a weaker note due to profit-taking.
  • Singapore REITs market continued to outperform the region, as businesses welcomed phase 3 of the reopening late last year.
  • Singapore office REITs expect positive office rental reversions, as expiring leases are still lower than spot market rental rates.
  • Suburban malls continued to recover well; tenant sales back to around pre-COVID levels.

Asia Pacific REITs performance

 Total return  2020  Jan 2021
 Asia REITs  -3.0%  0.3%
 Singapore REITs  -3.6%  1.9%
 Australia REITs  -4.5%  -4.1%
 Hong Kogn REITs  -13.5%  -3.0%

Source: Bloomberg, as of 31 January 2021. Asia Pacific REITs are represented by FTSE EPRA Nareit Asia ex Japan Index (capped), Singapore REITs by FTSE Strait Times Real Estate Investment Trust Index, Hong Kong REITs by Hang Seng REIT Index and Australia REITs by S&P/ASX200 A-REIT Index. Performance is in local currency terms. Past performance is not a guarantee of future results.

  • Accommodative monetary policies are here to stay, given the fragile global economy.
  • AP REITs still offer more attractive yields, compared to broader equity markets and government bonds.
  • The sector should continue benefitting from global search for yields.

Yield comparison vs equity/ government bond

Source: Bloomberg, as of 31 December 2020. REIT Yield: Asia ex-Japan REITs are represented by FTSE EPRA Nareit Asia ex-Japan REITs 10% Capped USD Index, Australia REITs by S&P/ASP 200 A-REIT Index, Hong Kong REITs by Hang Seng REIT Index, Singapore REITs by FTSE Straits Times REIT Index. Equity Dividend Yield: Australia equities are represented by S&P/ASX 200 Index, Hong Kong equities by Hang Seng Index, Singapore equities by Straits Times Index. For illustrative purposes only. The above yields do not represent the distribution yield of the Fund and are not an accurate reflection of the actual return that an investor will receive in all cases. A positive distribution yield does not imply a positive return. Past performance is not an indication of future results.

Important Information

Manulife Global Fund (the “Company”) is an open-ended investment company registered in the Grand Duchy of Luxembourg. The Manulife Global Fund - Asia Pacific REIT Fund ("the Fund") is recognised under the Securities and Futures Act of Singapore for retail distribution. The Company has appointed Manulife Investment Management (Singapore) Pte. Ltd. as its Singapore Representative and agent for service of process in Singapore. The information provided herein does not constitute financial advice, an offer or recommendation with respect to the Fund. The information and views expressed herein are those of Manulife Investment Management (Singapore) Pte. Ltd. (Company Registration No. 200709952G) and its affiliates ("Manulife") as of date of this document and are subject to change based on market and other conditions. Manulife expressly disclaims any responsibility for the accuracy and completeness of, and the requirement to update, such information. Investments in the Fund are not deposits in, guaranteed or insured by Manulife and involve risks. The value of units in the Fund and any income accruing to it may fall or rise. Past performance of the Fund is not necessarily indicative of future performance. Opinions, forecasts and estimates on the economy, financial markets or economic trends of the markets mentioned herein are not necessarily indicative of the future or likely performance of the Fund. The Fund may use financial derivative instruments for efficient portfolio management and/or hedging. Investors should read the Singapore prospectus and the product highlights sheet and seek financial advice before deciding whether to purchase units in the Fund. A copy of the Singapore prospectus and the product highlights sheet can be obtained from Manulife or its distributors. In the event an investor chooses not to seek advice from a financial adviser, he should consider whether the Fund is suitable for him. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.