If you are in your the 50’s Where close to retirement, you may want to think about investing beyond your own financial goals.
Starting young is very useful when it comes to investing because it allows your money to grow. compound over a longer period.
Ideally, if you can start putting money into your investment account when you’re in the cradle, you could enjoy incredible growth that can last for years, if not decades.
Babies, of course, will need a little help from their parents.
By allocating money for your newborn or toddler, you can give them a head start in life.
Park that money in a good reputation blue chip companies or well managed REIT not only protects their capital, but also helps generate returns that can be reinvested over time.
One method of doing this is to maintain a separate investment account that invests only for your child.
In this way, you can follow the evolution of this fund and enrich it periodically over the years, like a average purchase method.
Here are three actions you can consider for your child’s investment account.
Parkway Life REIT (SGX: C2PU)
Parkway Life REIT, or PLife REIT, is one of Asia’s largest healthcare REITs with assets under management (AUM) of approximately S $ 2 billion as of June 30, 2021.
The REIT owns 55 properties in total, comprising three hospitals in Singapore, 51 nursing homes in Japan and strata titled lots at a specialty clinic in Kuala Lumpur, Malaysia.
PLife REIT has an enviable history of uninterrupted increases in the recurring distribution per unit (DPU) since its IPO in 2007.
Recently, the REIT also held an EGM at which unitholders approved the signing of new framework rental agreements for its three hospitals in Singapore which will last until the end of 2042.
The sealing of this transaction provides better visibility for the REIT and unitholders can be assured of a constantly increasing SFP.
The REIT also released a mixed set of figures for its first half of fiscal 2021 (1H2021).
While both gross and net property income fell slightly year over year, DPU increased 4% year over year to S $ 0.0695.
The dividend yield based on an annualized DPU of S $ 0.139 is 3.1%.
United Overseas Bank Ltd (SGX: U11)
United Overseas Bank, or UOB, is one of the three largest banks in Singapore.
The group has a global network of 500 branches and offices in 19 countries and territories.
The lender has remained resilient throughout the pandemic and for its second quarter of fiscal 2021 (2Q2021), it has announced a healthy set of finances.
Loan growth was healthy, and its net profit jumped 43% year-on-year to exceed S $ 1 billion.
The bank also declared an interim dividend of $ 0.60 per share, exceeding the $ 0.50 paid in 2019.
UOB’s wealth management arm continues to grow its assets under management, up 7% year-on-year to S $ 137 billion in 1H2021.
The group has a diversified loan portfolio, the main sectors of which are represented by building and construction (26%) and home loans (23%) on the basis of its financial statistics as of June 30, 2021.
The bank is also strengthening its ESG and established a Climate-Related Financial Reporting (TCFD) working group to help it meet its green goals.
To take advantage of the growing wealth of consumers, UOB also launched its digital bank TMRW and has attracted more than 355,000 customers in Indonesia and Thailand.
The bank will invest up to S $ 500 million over the next five years to expand its digital offerings and plans to launch TMRW in Singapore by the fourth quarter of this year.
Haw Par Corporation Ltd (SGX: H02)
Haw Par is a conglomerate with four key divisions: healthcare, recreation, real estate and investments.
Its health division is represented by the famous Tiger Balm brand and manufactures a wide range of products such as balms, ointments and pain relief patches.
The group has seen its turnover and net income negatively impacted by the pandemic.
In 1H2021, revenue fell 18.6% year-on-year to S $ 65.8 million while net profit plunged nearly 42% year-on-year to S $ 53 million.
Despite the sharp drop in net income, the group continued to generate free cash flow.
The group has also paid a constant dividend over the years, with 2018 being a record year when the group paid a special dividend of S $ 0.85 to mark its 50e birthday.
For 1H2021, Haw Par declared an unchanged interim dividend of S $ 0.15 per share.
The business is expected to experience a strong recovery once the pandemic has passed and borders begin to reopen.
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Disclaimer: Royston Yang does not own any shares in any of the companies mentioned.
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