Honorary Award for Best Fund of the Year 2568, Property and Infrastructure Fund, MFC Asset Management Public Company Limited
The Bank of Thailand's accommodative monetary policy, with the market anticipating another interest rate cut this year to 1%, is expected to lower financing costs and interest expenses, a positive factor for real estate investment trusts.
MFC Asset Management Public Company Limited received the Best Fund of the Year 2568 award in the Property and Infrastructure Fund category for the MFC Property Wealth Fund (M-PROPERTY).
Thanachot Rungsitthiwat, Managing Director, MFC Asset Management Co., Ltd. Regarding the award, MFC Asset Management Co., Ltd. expressed its pride in receiving it. This award reflects its ability to manage funds efficiently, its commitment to generating stable returns for investors, and its strict adherence to investment frameworks under challenging market conditions.
“On behalf of MFC, I would like to thank all investors for their trust and the dedicated fund management team. We will continue to develop and pursue suitable investment opportunities to create sustainable wealth for our investors.”
Falling interest rates make REITs attractive investments.
Regarding the overall Thai real estate fund market in the second half of 2568, Thanachot stated that signs of recovery began to emerge last year, following a significant market decline due to the impact of the 2019 coronavirus disease (COVID-19) pandemic in 2563. This suggests that the Thai real estate fund market has bottomed out, and Thai real estate fund performance will recover in 2566. Occupancy rates have continued to recover to 80-90% or higher, with consistent dividend payments. Furthermore, there is a clear and sustained trend toward a recovery in the dividend payout ratio (DPU).
Supporting factors for the recovery of Thai real estate funds include the recovery of the tourism industry and domestic consumption, which are expected to recover in the second half of the year. The Bank of Thailand (BOT)'s accommodative monetary policy and the downward trend in Thai interest rates, with the market anticipating another rate cut this year at 1%, are contributing to lower financing costs and interest expenses for real estate funds, a positive factor for real estate investment trusts (REITs) going forward, as well as the acquisition of new assets. Currently, the SETPREIT index has a price/NAV ratio of 1.5, lower than the average of 0.73.
SETPREIT yields 9% per year
Regarding the 2568 dividend forecast for Thai REITs, the SETPREIT Index offers an attractive average yield of 9% per annum, which is considered attractive given the price. Meanwhile, the 10-year Thai government bond yield trend has declined to 2% per annum, resulting in a yield spread between bonds and Thai REITs of approximately 7% per annum, exceeding the five-year average of 5% per annum. This is higher than other countries in the region and global REITs. MFC Asset Management believes that Thai REITs are attractive for gradual accumulation for medium- to long-term investment, given their low prices and high dividend yields, making them an attractive investment option for investors seeking consistent dividends.
Regarding factors that may pressure the market and create volatility, the outcome of the tariff negotiations between Thailand and the United States may have an impact on market sentiment and the Thai economy in the short term.
Thanachot pointed out investment opportunities in real estate through mutual funds. He pointed out that there are currently 35 Real Estate Investment Trusts (REITs) on the market, 1 Property Funds (Type 20) listed on the stock exchange, totaling 55 funds, and eight infrastructure funds (as of June 8, 30). The market capitalization of all three types of mutual funds totaled 68 billion baht, or approximately 3% of the overall market cap. This demonstrates a diverse range of assets and industries, with each fund having its own unique asset fundamentals, and some REITs having limited liquidity.
Therefore, investing through mutual funds offers greater liquidity. Fund managers will allocate their investment portfolios, diversify industries, and conduct fundamental analysis of each asset. They will also look for opportunities in REITs whose prices have declined but whose fundamentals remain strong, whose dividend payout ratios (DPUs) are growing continuously, and whose prices remain attractive. They will also gain access to new and interesting REIT funds. Furthermore, REIT investments are defensive plays, suitable for managing overall portfolio risk.
REITs meet investor needs
Want consistent dividends
For the fund that MFC Asset Management recommends, the MFC Property Dividend Fund (MPDIVMF) has a fund policy to invest primarily in investment units of real estate mutual funds and/or trust units of real estate investment trusts (REITs) and/or stocks under the real estate group listed on the Stock Exchange of Thailand.
Fund Highlights: Over 10 years of performance (established on 8 October 56) and received a 4-star Morningstar award. Dividend payment policy: no more than 4 times per year. The fund has a history of paying dividends consistently. Managed by managers with experience in REITs. Investment strategy: Selecting fundamental REITs with strong fundamentals, long-term income growth, attractive dividend yields compared to price, and focusing on generating returns above the benchmark index.
MFC Asset Management has a positive outlook on the warehouse/telecommunications infrastructure sector, which boasts a high occupancy rate of 90% and stable income, is resilient to economic cycles, and has been investing in new assets, generating continued growth in fund income. Furthermore, REITs in the retail and hotel sectors have continued to recover, benefiting from government economic stimulus policies and tourism.
The MPDIVMF fund is suitable for investors who focus on receiving consistent dividend income and the recovery of the Thai real estate sector in the long term. Investors should understand the product characteristics, conditions, returns, and risks before deciding to invest and invest appropriately with an acceptable level of risk. Investors can view information on the fund's past returns in the prospectus summarizing important information at www.mfcfund.com And from the beginning of the year until 25 July 68, MPDIVMF has announced a total dividend payment of 0.41 baht per unit (3 times).
Interested investors can conveniently open a mutual fund account through the MFC Wealth app, which currently offers a special promotion for new customers who have never previously held a mutual fund account with MFC. Simply open an account and complete identity verification to receive MMGOVMF investment units worth 200 baht instantly. Within the MFC Wealth app, investors can track their investment portfolio status 24/XNUMX, as well as make purchases, sales, or fund swaps anytime, anywhere. They can also stay updated on news, announcements, promotions, and expert analysis and investment perspectives.
