Facing the wave of US dollar rate cuts, why have Asia-Pacific REITs become the focus of asset allocation for 2026?

Recently, the rate-cut signals released by the Federal Reserve and the increasingly weak US dollar are drawing global capital towards high-yield, quality non-US assets. Meanwhile, although the Bank of Japan maintained interest rates unchanged at its latest meeting, its more optimistic tone on the “moderate growth” of the economy has eased market concerns about any sudden policy shift.

Achieving both growth and income, without fear of 'ceiling' limitations
Some high-yield strategies come at the cost of sacrificing long-term growth potential. By investing in high-quality REITs, investors can receive regular and attractive dividends while fully benefiting from the long-term appreciation potential of underlying property values driven by economic growth.

Selecting high-yield leaders to build a defensive fortress
The fund tracks the S&P High Dividend Asia-Pacific REIT Index, systematically screening dividend leaders with strong financials across regions, automatically building a diversified 'rental king' portfolio, which serves as an ideal defensive core in volatile markets.

• Investment involves risks; past performance is not indicative of future results. Fund prices can go up as well as down, and investors may suffer all or significant losses. Investors should not make any investment decisions based solely on this material.

• The Samsung Asia Pacific High Dividend REIT (excluding New Zealand) ETF is a sub-fund of Samsung ETF Trust II. Its investment objective is to provide investment performance that closely tracks the S&P High Yield Asia Pacific ex-New Zealand REIT Select Index ("Index") before fees and expenses.

• The main risk factors faced by the Samsung Asia Pacific High Dividend REIT (excluding New Zealand) ETF include general investment risks; currency risks; concentration risks in the Asia-Pacific real estate market; risks associated with investing in real estate funds (including real estate market risks, operational and management risks, interest rate risks, liquidity risks, regulatory risks, leverage risks, etc.); Asia-Pacific market risks; securities lending transaction risks; new index risks; multi-counter risks; other currency distribution risks; risks of distributions from capital or effectively from capital; passive investment risks; tracking error risks; trading risks; risks of trading differences; termination risks; reliance on market makers and liquidity risks, among others. Please note that the above list of investment risks is not exhaustive. Investors should carefully read the product prospectus, product key facts statement, and related sales documents before making any investment decisions to fully understand details such as product features, risk factors, and distribution policies.

• The above fund has been recognized by the Hong Kong Securities and Futures Commission (SFC). Recognition does not imply official endorsement of the product. This material is for reference only and does not constitute an offer or solicitation to any person to buy, sell, or adopt any investment strategy.

• The manager may, at their discretion, make cash distributions to unit holders from capital or gross income (while charging all or part of the product’s fees and expenses to the capital or paying them out of the product's capital), thereby increasing distributable income for making distributions, which effectively constitutes a return of capital.

• Distributions paid or effectively paid out of capital equate to investors receiving a return of part of their original investment or withdrawing part of their initial investment or capital gains attributable to that original investment. Any practice involving distributions paid out of the product's capital or effectively out of the product’s capital may result in an immediate reduction in the net asset value per unit.

• This document has been prepared by Samsung Asset Management (Hong Kong) Limited (SAMHK) and has not been reviewed by the SFC or any other regulatory authority. Investors should determine whether any investment product or strategy is suitable based on their personal financial situation, investment experience, and objectives. If you have any questions regarding the relevant information, you should seek advice from professional advisors as needed.

• Certain information contained in this content is compiled from third-party sources. SAMHK has made efforts to ensure that such information is accurate, complete, and up-to-date, and appropriate measures have been taken to verify the accuracy of the reproduced data. However, no responsibility or liability is assumed for the accuracy, use, or reliance on such information. This content may contain forward-looking statements based on SAMHK’s opinions, expectations, and projections. SAMHK has no obligation to update or revise any forward-looking statements, and actual results may differ materially from those anticipated in the forward-looking statements. All copyrights of the content herein (including all data, images, computer codes, text, logos, and designs) are owned by SAMHK. No reproduction or redistribution of the information provided in this content is allowed without SAMHK’s consent.