Diversify with global REITs for income and growth potential
With the US Federal Reserve signaling no further rate hikes and yields cut to zero, the lower-for-longer environment is beneficial to Global REITs, particularly given the focus on yield.
Global REITs may potentially offer attractive returns relative to other yield-oriented securities, providing income growth over time through stable and growing dividends over the long-term.
Yields on Global REITs1
For over two decades, Global REITs have demonstrated a proven track record, significantly outperforming the broader market through multiple market environments with a total annualised return of 10.78%.
Global REITs perform well in various interest rate environments and may act as a hedge against inflation, providing investors with added protection.
Global REITs have outperformed the broader market2
As we navigate our way through a post-Covid-19 world, major Global REITs are a well-diversified mix of retail, commercial and industrial assets opening a much broader opportunity set.
This diversification across geographies and sectors provides investors with unique advantages and increased potential for capital appreciation.
Global REITs are well diversified3
1. Bloomberg as of 31 December 2021. 10 Year Government Bond Yield measured by Local Generic 10- year Government Bond Yield. Australia REITs measured by S&P/AX 200 A-REIT Index (AS51PROP), U.K REITs measured by FTSE EPRA/NAREIT UK REITs (ENUKRG), Hong Kong REITs measured by Hang Seng REIT Index (HSREIT), Japan REITs measured by TSE REIT Index (TSEREIT), Singapore REITs measured by FTSE EPRA/NAREIT Developed REITs Singapore Index (ERGLSGE), US REITS measured by FTSE EPRA/NAREIT United States (UNUS).
2. Morningstar Direct, as of 31 December 2021. Past performance does not guarantee future results. Gross total return indexes reinvest as much as possible of a company’s dividend distributions. The reinvested amount is equal to the total dividend amount distributed to persons residing in the country of the dividend paying company. Gross total return indexes do not, however, include any tax credits.
3. Manulife Investment Management, as of 31 January 2022. The securities mentioned are for illustrative purposes only, and do not constitute any investment recommendation or advice. It should not be assumed that an investment in these securities or equities was or will be profitable. Information about the asset allocation is historical and is not an indication of the future composition. Due to rounding, the total may not be equal to 100%..