Schroders sees long-term returns from Singapore Reits
INVESTORS seeking a sustainable income source should consider Singapore real estate investment trusts (S-Reits) as part of their investment portfolio, Schroders suggested on Wednesday.
Schroders said Reits had been a popular way for investors to invest in property while at the same time receiving an income. However, they have lost favour amid concerns over rising US interest rates. This was because as bond yields rise, the yield difference between a 'safer' bond and a more 'risky' income stock , narrows, making the latter less attractive.
"But if we take a look at longer-term performance and see how Reits in Singapore compare to the broader equity market, we can see that they could still have a role to play in investors' portfolios over longer time horizons and for anyone looking for a source of sustainable income,'' Schroders said.
For many S-Reits, dividends are paid out quarterly. Investors stand to reap long-term returns from reinvesting dividends earned back into the market.
"Utilising the power of compounding, the effect of dividends on overall performance is often understated,'' Schroders said.
Link: www.businesstimes.com.sg/stocks/brokers-take-schroders-sees-long-term-returns-from-singapore-reits?xtor=EREC-16-4%5BBT_Newsletter_Debrief%5D-20170412-%5BBroker%27s+take%3A+Schroders+sees+long-term+returns+from+Singapore+Reits%5D&xts=538380
Schroders said Reits had been a popular way for investors to invest in property while at the same time receiving an income. However, they have lost favour amid concerns over rising US interest rates. This was because as bond yields rise, the yield difference between a 'safer' bond and a more 'risky' income stock , narrows, making the latter less attractive.
"But if we take a look at longer-term performance and see how Reits in Singapore compare to the broader equity market, we can see that they could still have a role to play in investors' portfolios over longer time horizons and for anyone looking for a source of sustainable income,'' Schroders said.
For many S-Reits, dividends are paid out quarterly. Investors stand to reap long-term returns from reinvesting dividends earned back into the market.
"Utilising the power of compounding, the effect of dividends on overall performance is often understated,'' Schroders said.
Link: www.businesstimes.com.sg/stocks/brokers-take-schroders-sees-long-term-returns-from-singapore-reits?xtor=EREC-16-4%5BBT_Newsletter_Debrief%5D-20170412-%5BBroker%27s+take%3A+Schroders+sees+long-term+returns+from+Singapore+Reits%5D&xts=538380
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