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Phillip Singapore Real Estate Income Fund  

Are you getting REGULAR returns on your Investments?

Singapore's first REITs fund was launched by PhillipCapital's own asset management arm -
Phillip Capital Management (S) Ltd. This fund is available for investing through POEMS at only 0.75% sales charge (minimum investment amount of $1000). Read article published on "The Edge, Singapore".

Payout Feature
 

This fund pays out quarterly dividends to investors and targets a 6% p.a. yield.  

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Q: What does the Fund Invests in?
The fund invests mainly in Singapore listed Real Estate Investment Trusts (REITs). The fund may invest up to 10% into foreign exchange listed REITs.
Q: Who should invest in the Fund?
Investors who seek a fund that provides regular income and has lower volatility than traditional stocks.
Q: What are the benefits of investing in REITs?
   ♦ Historically, attractive yields of above 6% (Jan 2008 to June 2011).
   ♦ Lower volatility than stocks1
   ♦ The structure of a REIT provides protection for investors.
Q: What kinds of protection do the REIT structure offer?
   ♦ REITs are legally obligated to pay at least 90% of their annual rental income less costs to unit holders
   ♦ REITs are legally obligated to limit borrowings to 35% if debt is unrated or 65% for rated debt
   ♦ Tenants usually sign lease terms of > 4 years

The Phillip Singapore Real Estate Income Fund focuses on Singapore listed REITs (S-REITs) that includes warrants, bonds and convertible bonds issued. The fund invests in a diversified portfolio of REITs comprising of industrial, retail, office, healthcare, hospitality and residential sectors that demonstrate capital appreciation opportunities and sustainable dividend growth potential.

Use of the Fund in Asset Allocation
Depending on the needs of different investors and the prevailing market conditions, REITs may be used to substitute the equity component of investors’ portfolios during high volatility periods or used to substitute the bond component of a portfolio during low periods of low volatility.

A sample illustration of our suggested allocations that could suit your investment needs:- 

 

Equities

Bonds

REITs

Previously

50%

50%

0%

Now

50%

25%

25%

 

A Brief History of REITs in Singapore

The Monetary Authority of Singapore first introduced rules to regulate the REIT sector in 1999. In 2002, CapitaMall Trust became the first REIT launched in Singapore. 

Over the next 8 years, more than 20 REITs listed on the Singapore Exchange Mainboard. In 2005 and 2007, the MAS released consultation papers, which led to enhanced regulations in the areas of REIT approvals, valuation rules, capital structure, tax waivers and facilitation of overseas expansion for REITs. These regulations were intended to help promote the Singapore REIT market by providing protection to unitholders.   

As of October 2010, Singapore was the 3rd largest market in Asia for REITs with Japan and Australia being the first and second largest respectively by market capitalization. As a whole, Asia consists of 21% of the global market capitalization for REITs, smaller than the US (60%) but larger than Europe (19%). 

Footnotes
1: Average annual volatility 1 Jan 2005 – June 2 2011: Straits Times Index versus FTSE Singapore REIT Index
*Terms and conditions applies, refer to
http://www.phillipfunds.com for more details

Funds managed by  

 
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