How will the merger between CapitaLand Mall Trust and CapitaLand Commercial Trust affect my REIT+ portfolio?

CapitaLand Commercial Trust (CCT) units would have been converted to CapitaLand Mall Trust (CMT) units upon the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust on 21 October 2020. 

As such, you will see the CMT allocation as around 18% of your portfolio currently. We understand from SGX that this merger will have no change on the iEdge S-REIT Leaders Index for now i.e. CMT will also have a weighting of around 18% on the index. 

However, adjustments to the index are expected to be made next March. The index is reviewed in March and September. Index constituents will have their index weights capped at 10% at each semi-annual rebalance date. As a result of the above, we expect the ‘excess index weight’ for CMT to be proportionally redistributed. However, clarity on how SGX will redistribute the index weights will only be known next March.

As the REIT+ portfolio tracks the iEdge S-REIT Leaders Index, we will adjust our portfolio as well next March in line with changes made to the index. No changes resulting from the merger will be made to the REIT+ portfolio for the time being.