Investors considering REIT+ portfolio have two options: a 100% REITs portfolio or a risk-managed portfolio that combines REITs with Singapore government bonds (via the ABF Singapore Bond Index Fund).
The 100% REITs portfolio holds 20 of Singapore’s largest REITs and tracks the performance of the SGX iEdge S-REIT Leaders Index. It is designed for investors with higher risk appetite and longer investment horizon who want full exposure to Singapore REITs.
REITs with Risk Management
The REITs with Risk Management portfolio combines Singapore REITs with Singapore Government Bonds (via the ABF Singapore Bond Index Fund). The REITs component in this portfolio also tracks the SGX's iEdge S-REIT Leaders index.
Using our risk management methodology, we will reduce your REITs allocation and increase your bond allocation during periods of increased volatility. When volatility subsides, we will increase again increase your REITs allocation to capture the market recovery.
However, at any point of time, your REITs with Risk Management portfolio will always have a REITs allocation of at least 50%. There is no maximum REITs allocation, i.e. your REITs allocation may even form 100% of your portfolio if market conditions are extremely favourable.
The REITs with Risk Management portfolio is designed for investors who feel more comfortable with portfolios that don’t fluctuate too wildly based on market conditions.
Learn more about the two options here.