Syfe is dropping SPH REIT from its REIT+ portfolio, which tracks the iEdge S-REIT Leaders index by the Singapore Exchange (SGX).
In its place, the digital wealth management company is adding Lendlease Global Commercial REIT and AIMS APAC REIT to its constituent list, with 1.5% and 0.9% portfolio weightage respectively.
This follows SGX’s semi-annual rebalancing of the iEdge S-REIT Leaders index, which adds Lendlease Global Commercial REIT to its list of 27 trusts, effective March 22. Lendlease Global Commercial REIT will constitute 1.27% of the index, while SPH REIT will contribute 0.41%.
In an email sent to users on March 19, Syfe says the adjustments are in line with changes made to the index.
See: Digital advisor Syfe to work with SGX on special REIT portfolio
“The inclusion of Lendlease Global Commercial REIT in REIT+ reflects its most recent inclusion in the iEdge S-REIT Leaders Index,” says Syfe.
“REIT+ is an optimised portfolio of 20 REITs which seeks to track the iEdge S-REIT Leaders Index as closely as possible to enhance its overall performance. By also including AIMS APAC REIT and excluding SPH REIT, the REIT+ portfolio is able to achieve a minimal tracking error of 0.5%,” adds the company.
With the adjustments, portfolio leader Capitaland Integrated Commercial Trust will halve its weightage in Syfe’s REIT+ from 22.62% to 10.32%, owing to a merger last year.
“Following the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust in October 2020, the new entity, CapitaLand Integrated Commercial Trust, held a combined weighting of approximately 20%,” says Syfe.
“iEdge S-REIT Leader Index constituents will have their index weights capped at 10% at each semi-annual rebalance date in March and September,” adds the company. “The new weighting for CapitaLand Integrated Commercial Trust reflects this capping methodology.”
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The iEdge S-REIT 20 Index is one of the most popular indices in the Singapore stock market, made up of some of the largest S-REITs from across the retail, industrial, office and logistics sectors.
Since April 2020, Syfe users can choose either a portfolio made up of purely REITs, or a risk-managed portfolio that balances REITs with government bonds.
