Heungkuk Asset Management Launches 'Singapore REITs Plus Fund'

[Asia Economy Reporter Minji Lee] Heungkuk Asset Management announced on the 3rd that it will launch the ‘Heungkuk Singapore REITs Plus Real Estate Private Investment Trust.’

The Heungkuk Singapore REITs Plus Fund primarily invests in high-quality Singapore-listed REITs, seeking dividend income and capital gains, while also investing partially in domestic listed REITs.

The portfolio allocation maintains over 60% in Singapore real estate, less than 10% in domestic real estate, and up to 40% in bond-related ETFs, with plans to adjust proportions according to market conditions.

Many major large REITs listed in Singapore have Temasek, the sovereign wealth fund, as a major shareholder (20-40%), ensuring excellent stability. In terms of returns, they have recorded approximately a 6% dividend yield over the past five years, which is higher than dividend yields of REITs listed in major countries.

Kim Min, Executive Director of the Marketing Strategy Headquarters, stated, “Due to the Hong Kong National Security Law issue, the possibility of global multinational companies relocating to Singapore has increased,” adding, “It is significant as the first public offering fund primarily targeting Singapore-listed REITs.”

This fund, in accordance with the government’s ‘Public Offering Real Estate Indirect Investment Activation Plan,’ will invest in public REITs and real estate funds until the end of next year, and if held for more than three years, investors will receive a dividend income separate taxation benefit (9.9% low tax rate) up to a limit of 50 million KRW. Fund subscriptions are available through Hana Financial Investment, Hyundai Motor Investment Securities, IBK Investment & Securities, and KB Securities, with plans to continuously expand distributors in the future.

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