The CIO of the foremost Asian financial institution chooses a "massive earnings producing asset" with a 5% return
The logo of DBS, Singapore's largest bank.
Roslan Rahman | AFP | Getty Images
SINGAPORE – Singapore retail property mutual funds are a "great income generating asset" that offers returns of around 5%, according to the chief investment officer of Southeast Asia's largest bank.
Singapore is one of the largest Asian markets for REITs. These are listed companies that own, operate or finance real estate that generate income. REITs are usually preferred by investors looking for a constant dividend payout.
"Singapore REITs are a beautiful sector in my opinion," Hou Wey Fook, CIO of DBS Bank, told CNBC's "Street Signs Asia" on Friday.
He stated that data center REITs will continue to perform well as the coronavirus pandemic accelerated the adoption of digital technologies, while retail REITs will benefit from Singaporeans' “affinity for shopping malls”.