Samsung Asset Management "US REITs Fund Posts 24% Return Since Early This Year"

[Asia Economy Reporter Minji Lee] Samsung Asset Management announced on the 14th that the ‘Samsung Nuveen American REITs Fund’ ranked first in returns among global REITs funds.

The fund's year-to-date return is 24.22%. The Samsung Nuveen American REITs Fund invests in REITs listed in the United States, aiming for steady dividend income, with a high investment proportion in non-face-to-face sector real estate such as data centers and communication towers, which are less affected by COVID-19.

The U.S. REITs market is the largest among global REITs markets, with 180 products listed and a scale of approximately 1,500 trillion KRW, boasting a long history. The Samsung Nuveen American REITs Fund incorporates an average of 35 to 45 stocks based on thorough real estate market analysis and risk management.

While Japan has a high proportion of offices, Australia retail, and the UK industrial sectors, U.S. REITs are evenly diversified across a wide range of industries, offering the advantage of investing in various real estate sectors solely through U.S. REITs. High dividend income is also a strength of this fund. Expectations are growing that dividend days may increase due to the resumption of U.S. economic activities following COVID-19 vaccine distribution.

Additionally, the ‘Samsung J-REITs Real Estate Fund’ is also performing well with a year-to-date return of 22.35%. This fund invests in the Japanese real estate market, which has entered a full recovery phase after more than 20 years of prolonged recession. It diversifies investments across various real estate types in Japan, including offices, commercial facilities, residences, and hotels, pursuing stable dividend income of about 3.8% annually.

Park Yong-sik, manager at Samsung Asset Management, explained, “Gradual increases in inflation and interest rates accompanied by economic recovery drive up rents on real estate held by REITs, which can lead to a positive outcome by increasing the dividend resources available for distribution to investors,” adding, “Situations like the current one are actually favorable for REITs investment.”