UOBAM launches S-Reit income fund for Taiwan retail investors

UOB Asset Management (Taiwan), or UOBAM (Taiwan), on Tuesday launched a Singapore real estate investment trust (S-Reit) income fund targeted at Taiwan retail investors.

Known as the United S-Reit Income Fund, it is the first S-Reit fund in Taiwan, the asset manager said in a media statement.

More than 60 per cent of the fund's portfolio will be allocated to S-Reits while the rest will be invested in global Reits.

In terms of dividends, the fund aims to provide a monthly payout, said chief executive officer of UOBAM (Taiwan) William Wang.

The fund has a risk rating of RR4, which indicates moderate to high-risk yield-driven investments in developed markets' assets that may be susceptible to significant market movements, UOBAM said.

Its initial offering period will close on July 24.

Singapore-headquartered UOBAM is the adviser for the fund.

Mr Wang said S-Reits are attractive investments as they possess "strong fundamentals including reputable sponsors, sound balance sheets and low debt levels".

"While their recent price performance was affected by the impact of the Covid-19 pandemic, their current valuations present buying opportunities and we are also optimistic of their long-term growth prospects," he added.

The S-Reit market has a total market capitalisation of S$98 billion as at May 31, with an average dividend yield of 7.2 per cent and an average 10-year annualised total return of 8.3 per cent, UOBAM said.

Shares of UOB were up S$0.28 or 1.4 per cent to S$20.36 by Tuesday's midday trading break.