TA Investment declares income distributions for two funds

KUALA LUMPUR: TA Investment Management Bhd (TAIM) has declared gross income distributions of 2.5 sen per unit for TA Dana Fokus (TADF) and 1.5 sen per unit for TA Asia Pacific REITs Income Fund (TAREITs) to the registered unit holders of the funds as at Oct 31.

In a statement, TA said TADF aimed to achieve total return over the medium to long-term period by investing in a focused portfolio, mainly equities, that comply with Shariah requirements.

It said TADF has achieved a remarkable return of 67.49 over the 5-year period up to Sept 29.

“We believe that the targeted policies within in specific industries will be the key catalyst in attracting foreign funds back into our market. Our energy transition plan, with its strong focus on renewable energy sources including solar, hydro, and biomass, is particularly promising due to Malaysia’s abundant sunlight and rainfall along with availability of vast biowastes.

“We are also optimistic on selective manufacturing sectors, which will benefit from the trade diversion from China,” TA said.

Meanwhile, TAREITs achieved total returns of 7.22% over the 5-year period as of Sept 29.

TA said Asia Pacific REITs have retreated year-to-date in 2023, as investors adopted a risk-off stance in response to the slowing economic outlook in Asia, rising crude oil prices, and the Federal Reserve (Fed)’s hawkish tone in its updated economic and policy rate forecasts.

“The emerging narrative of a ‘higher-for-longer’ interest rate regime has also significantly dampened sentiment, affecting the prices of REITs.

“However, against this backdrop, REITs are becoming more attractive due to their discounted valuations, while the fundamentals remain supportive. Steady rental growth and a tighter supply outlook should limit downside risks,” TA said.