[Asia Economy Reporter Ji-hwan Park] Meritz Securities announced on the 27th that it has launched and is servicing the Meritz Global REITs Wrap Account, a wrap account that diversifies investments in REITs listed on global exchanges by country and sector.
REITs (Real Estate Investment Trusts) are investment companies that collect funds from investors to invest in real estate, either owning properties or operating related businesses, and distribute income such as rental income and capital gains as dividends. Recently, due to high volatility in the stock market and low interest rates, REITs investment has been gaining attention as an alternative. In particular, global REITs assets listed mainly in the U.S. are larger in scale and allow for more diverse portfolio composition compared to the domestic market, making them highly attractive investments. Since 2007, they have shown an average annual dividend yield of around 4%.
Unlike general closed-end physical real estate, which cannot be redeemed for several years after investment, listed REITs are traded on exchanges, allowing investors to buy and sell them anytime like regular stocks, which is an advantage.
EGIS Asset Management, a real estate investment specialist, provides advisory services and conducts regular rebalancing through continuous market analysis. Establishing an active market response process to proactively prepare for volatility is also attractive from a risk management perspective.
The minimum subscription amount is 30 million KRW. The contract period is one year, but early termination is possible without any additional fees. Quarterly operation reports are sent to transparently confirm the current management status and future management strategies.
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