Stand alone Bond Fund Alternative

ChainsawCharlie

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Reaper

I can't advise you but here's a few key facts I extracted while skimming the literature:

They are hoping rental income will provide inflation protection.
Listed on AIM.

Costs reduce the return by 6.5% per year.

Current yield is 3.46%

wmb194

Well, this morning Secure Income REIT (LSE:SIR) received a share and cash merger/takeover offer from LXi REIT (LSE:LXI) so it probably won't be around for much longer. As I type SIR's shares are up 9.12%.

Edit: the aim is to make the scheme effective in July 2022.

Reits can be tricky as you need to think about what they own, their debt loads, how things like rising interest rates will affect their tenants, debts and property values. If you think there might be a recession coming tenants might default and/or not pay on time or you won't be able to increase rents and so on. Definitely not a simple no brainer. There are ETFs where you can just 'buy them all' e.g., iShares UK Property ETF (LSE:IUKP) but I'm not sure I'd want to buy them all.

JohnWinder

1 In general, ignoring ‘now’, ‘then’ or ‘in future’, reits are considered a good investment, just as stocks and bonds are.

2 You’re swapping bonds for something else (your ‘alternative’), and what’s best for you at 60/40 depends on a lot of other things we don’t know.

3 reits are not bonds; they don’t guarantee a dividend, or promise to return your money.

4 reits are businesses owning/operating/leasing real estate assets for profit. That makes them stocks.

5 Your reit owns different types of assets, so has diversification, but still reits are just a sector of the stock market the way energy companies or telecoms or retailers are.

6 Another option is to buy a reit index etf: likely lower cost and more diversified.

6 When the stock market fell in 2001 reits saved your bacon. When the stock market fell in 2008 reits fell more. So they’re not always the answer to a maiden’s prayer.

7 Your fund has a much higher annual fee than an index stock fund or bond fund. Someone will be making money even if it’s not you. Costs are the only aspect of an investment that you have control over.

8 Having 5% of your investments as reits is unlikely to make a noticeable difference to your portfolio’s behaviour. >9% could be worth bothering with. Are you good with concentrating 10% of your portfolio on one sector of the stock market when you already will hold some reits among your index stock fund(s). It’s a bet on a sector, and a move away from the beauty of diversification.

https://www.bogleheads.org/forum/viewtopic.php?t=346748