Kuala Lumpur – Manulife Investment Management (M) Berhad announced that the Manulife Shariah  Global REIT Fund has won the Best Emerging Islamic REIT Fund 2021 at this year’s Global Islamic  Finance Awards. 

Manulife Shariah Global REIT Fund (“The Fund”) invests in Shariah-compliant real estate investment  opportunities from across the globe, potentially providing Malaysian investors with more diversified  sources of income and medium- to long-term returns.  

Mr. Jason Chong, Chief Executive Officer, Manulife Investment Management (M) Berhad  said, “We are honoured to receive this recognition from Global Islamic Finance Award for the success  of the Manulife Shariah Global REIT Fund. It is a testament to our commitment in providing investors  with unique global investment solutions that meet their financial goals. We must thank our investment  team for all their hard work and producing strong fund performances for our clients. The Award  reinforces our team’s capability in capitalising on long-term growth opportunities despite the challenges  we have been experiencing in the past couple of years.” 

“REITs can provide diversification and liquidity benefits for investors due to its relatively low correlation  to other assets. With exposure to emerging secular trends across the globe which support the long-term  growth trajectory for the real estate market, such as the increasing adoption of digital technology that  would require more data centers, the Fund can potentially offer investors a stable source of income (aim  to provide regular dividend payouts) in different market cycles.” 

The Fund is focused on residential, industrial and necessity-based retail REITs, which are expected to  take advantage of the projected global economic recovery and post COVID-19 impact; healthcare REITs,  such as medical centers and retirement homes, which are areas of growth in face of the world’s aging  population; infrastructure REITs, which in nature capture potentially higher growth opportunities  stemming from “new economy” sectors like e-commerce, self-driving cars, Internet of Things, and other  technology-related sectors. 

When compared to physical properties, REITs are free of worry related to illiquidity and are also proven to be a more resilient asset class throughout different stages of an economic cycle. Historically, Shariah  REITs have also generated higher total returns than conventional REITs, partly due to the Shariah  screening requirements that limit the companies’ debt-to-equity ratio to 33%. Between 2010 and 2021, IdealRatings® Global REITs Islamic Select Malaysia Index (the Fund’s benchmark) recorded a total return of 302.7%, compared to the S&P Global REIT Index return of 204.6%1. 

Ng Chze How, Head of Retail Wealth Distribution, Manulife Investment Management (M)  Berhad said: “With the US Federal Reserve signalling withdrawal of its stimulus program at the end of  2021 and raising interest rates starting in 20222, REITs, as proxies to real estate, are good inflation  hedges and may benefit from the continued asset reflation theme. This is mainly because some lease  structures have built-in annual step-ups or rental increases linked to Consumer Prices Index. This may  potentially create higher income for REIT investors.” 

“Our long-term outlook for Shariah Global REITs is positive. Global REITs have remained resilient and  are attractive in the current environment given their favourable distribution yields and steady cash flows.  Although there is pressure in some parts of the world due to rising COVID-19 cases and the emergence  of the “Delta Variant”, we remain optimistic that the continued rollout of the COVID-19 vaccine will keep  the global economic recovery on track.” 

Through active management, the REITs team in Manulife Investment Management (M) Berhad combines  top-down sub-sector and regional insights with a fundamentally driven, bottom-up security selection  process. The team also looks at a basket of both qualitative and quantitative factors to assess the  investment metrics of each REIT. 

For more information about the Manulife Shariah Global REIT Fund, please visit  manulifeinvestment.com.my. 

Twitter