Meritz Asset Management Launches 'Global REITs Fund' for Indirect Real Estate Investment

[Asia Economy Reporter Park Jihwan] Meritz Asset Management launched the 'Meritz Global REITs Real Estate Investment Trust' investing in global real estate funds on the 3rd.

The Meritz Global REITs Fund is a fund that invests in REITs listed worldwide. It mainly invests in real estate funds that own or operate properties located in the United States, Singapore, and Canada to generate income.

There are more than 800 REITs listed on stock markets worldwide through public offerings. In particular, REITs listed in the United States are known to hold assets worth approximately $2 trillion (about 2,300 trillion KRW) and own around 500,000 properties.

Generally, direct real estate investment requires a large sum of money, borrowing, and has the disadvantage of limited diversification. However, REITs allow convenient diversification into global real estate even without a large amount of capital. In the U.S. REIT market, which accounts for about 65% of the global REIT market, there are REITs based not only on traditional residential and retail properties but also those leasing specialized real estate assets such as logistics centers and data centers.

John Lee, CEO of Meritz Asset Management, said, "REITs have a relatively low correlation with the stock market, which can help offset stock volatility in a portfolio," adding, "Especially since most profits are distributed as dividend income, they are suitable for investors who need regular cash flow."

He emphasized, "The Meritz Global REITs Fund will invest not only in the U.S. but also in REITs from other regions such as Singapore and Hong Kong," and added, "By focusing investments on REITs in sectors expected to experience high growth, we will increase our clients' assets."

This content was produced with the assistance of AI translation services.