On the backdrop of China’s proposed national security law on HK, is it more risky for us to put our money in Nikko AM REIT ex Japan STF due to exposure to HK? - Seedly
Seedly logo
Seedly logo
 

Stocks Discussion

REITs

Investments

Online Brokerages

Property

SHerman

Asked 2w ago

On the backdrop of China’s proposed national security law on HK, is it more risky for us to put our money in Nikko AM REIT ex Japan STF due to exposure to HK?

Would the portfolio be rebalanced? Concerned as the the price dropped and I’m wondering if it could signify a long time before it reaches peak levels

0 comments

1 answer

Answer Now

Answers (1)

Sort By

CH
CH
Level 7. Grand Master
Answered 2w ago

The exposure in HK is from the individual REITs. Whether they will rebalance or not, have to depend on the REITs managers risk management (eg sell HK property and buy others).

Rebalancing at ETF level depends on the index they are tracking. Likely will depend on price movement, rather than actual country exposure. For this, you may have to email Nikko AM and ask what is their criteria for rebalancing, if there is.

But personally, property is a long term game. and the ETF exposure in China and HK is less than 40%. I think the more important question should be will Singapore properties perform after this pandemic.

0 comments

👍 0