Fund Rationale: United Asia Pacific Real Estate Income Fund

United Asia Pacific Real Estate Income Fund (the "Fund")
SGD Retail Distribution Shares (ISIN: SG9999010052)
Fund Manager Page

Endowus has selected the Fund as it is one of the purest Asia Pacific REIT funds in the market without domestic bias, selecting a well-diversified basket of companies with sustainable distribution growth.
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Key Information

Fund Objective: Aims to achieve total return consisting of income and capital appreciation over the medium to long term by investing primarily in Real Estate Investment Trusts (“REITs”) listed in the Asia Pacific region (including Japan, Australia and New Zealand).

Suitability: Investors who are seeking a total return consisting of income and capital appreciation over medium to long term, and are comfortable with the risks of a fund which invests mainly in REITs listed in the Asia Pacific region (including Japan, Australia and New Zealand).

Cost:
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* Total Fund-level Fees include fund management fee of 1.5%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 17 June 2013
Share Class Inception: 17 June 2013
Benchmark: S&P Asia Pacific REIT

Fund AUM: SGD 15.6m
Source: MorningStar as of 25 May 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:
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Sector Allocation:
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Source: MorningStar as of 30 April 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected the Fund because firstly, it is one of the purest Asia Pacific REIT funds in the market without much domestic bias. The Fund invests in listed REITs across the Asia Pacific region, including Japan, Australia, New Zealand, Singapore and Hong Kong. It therefore differentiates itself from other Asia Pacific property funds where there is usually a significant allocation to property developers aside from REITs, and where the investment universe does not necessarily include Japan, which has one of the largest REITs markets in Asia. 

The Fund is managed by experienced portfolio managers from UOB Asset Management as well as from Sumitomo Mitsui Asset Management. Colin Ng and Soo Fang with an average of 20 years investment experience from UOBAM manage the Asia-ex-Japan part of the portfolio while the Japan part of the portfolio is sub-advised by the team from Sumitomo Mitsui AM leveraging their on-the-ground experience in the Japanese REITs market. The collaboration between the two teams has been long and successful, which is reflected by the strong track record of the Fund since its inception. 

The Fund selects REITs companies with sustainable distribution growth and aims to generate income and stable returns for investors. Given that the Fund is well diversified, it is a relevant investment opportunity for REITs  investors with a strong home bias in Singapore REITs to expand their portfolio to other regional REITs. This will help to alleviate the reliance on the dynamics of the local Singapore market. 

The latest distribution target for the year 2021 is 4.5%. Investors should note that capital appreciation for REITs funds tend to be very low after taking the distribution, and investing solely in APAC REITs involves taking on concentrated regional and sectoral risk. Therefore when selecting the Fund, you should consider how much income versus capital appreciation you wish to generate, as well as to diversify your portfolio with allocations to other sectors and geography. 

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Updated by Endowus: June 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.