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REIT+

• How does REIT+ portfolio work?

  REIT+ portfolio is a Singapore REIT portfolio that tracks the SGX’s iEdge S-REIT Leaders Index. The index measures the performance of the most liquid REITs in Singapore.

  REIT+ portfolio invests in 20 of Singapore’s largest REITs. Designed for investors seeking passive income, you’ll get exposure to REITs like Mapletree Commercial Trust, CapitaLand Integrated Commercial Trust, Ascendas REIT and more.

  More information about the portfolio can be found here.

   

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• What are the different types of REIT+ portfolios?

  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).
  
  100% REITs

  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.

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• How are my REIT+ portfolio dividends handled?

   

  By default, REIT+ portfolio dividends are automatically reinvested. However, customers who maintain a invested amount or portfolio's current value (net asset value) of at least S$5,000 have the added option to receive their dividends as quarterly payouts to their designated bank account. 

  Once the investment requirement is met, the payout option is available in the portfolio settings, so eligible customers can take the decision as they see fit. 

  Specifically: 

  • In the event that your REIT+ portfolio value drops below S$5,000, but you haven't made any withdrawal and hence the portfolio's invested amount is still at least S$5,000, the option to receive quarterly dividend payouts to your bank account remains available. 
  • Inversely, if your invested amount falls below S$5,000, but your portfolio value remains at least S$5,000, the bank payout option is also available.
  • Note that as portfolio value can fluctuate due to market movements, it can drop below S$5,000 and as a result, the bank payout option is automatically disabled only if the invested amount is also below S$5,000. When this happens, you can top up to fulfil the invested amount of S$5,000 to maintain your quarterly payouts. 

  When are dividends received?

  Dividends are received in your REIT+ portfolio as and when the underlying REITs distribute them. This depends on the dividend distribution schedule of the various REITs. In Singapore, REITs can choose to distribute dividends on a semi-annual or quarterly basis.

  You may refer to this link for more information regarding the underlying REITs historical dividend yield and general dividend distribution schedule. 

  How are dividends reinvested?

  Dividends received are first accumulated in the small cash balance we maintain in your portfolio. When accumulated dividends (along with any new cash inflows) reach an economically viable investment level, our cash management algorithm will trigger the purchase of additional REITs. The new REITs purchased with your dividends are in proportion to the index weights of the iEdge S-REIT Leaders Index.

  When will dividends be paid out to eligible customers? Must I inform Syfe of the bank account I want my dividends to be credited to? 

  Eligible customers will receive their payouts quarterly in January, April, July and October. Shortly before dividends are to be credited, Syfe will email customers to obtain details of their bank account if they are not yet provided previously.

  Are dividends from the REIT+ portfolio subject to withholding tax?

  Distributions by REITs to individuals and Singapore-incorporated tax resident companies are generally not subject to withholding tax. For individuals who derive the distributions from the carrying on of a trade, business or profession or from a partnership in Singapore and other legal persons in Singapore (such as resident companies in Singapore), such gross distributions may be subject to income tax. Please consult your tax advisers.

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• Can I change from one portfolio option to the other, or invest in both?

  Yes, you can absolutely invest in both the 100% REITs and REITs with Risk Management portfolio options. You may create and invest in as many portfolios as you like to achieve your desired financial goals.

  If you already invested in a REIT+ portfolio, you can also switch from the 100% REITs portfolio to the REITs with Risk Management portfolio (and vice versa) without creating a new portfolio. To do so, simply log in to your Syfe Portfolios account > click on your REIT+ portfolio > scroll to 'Composition option' > click 'Change' and confirm your portfolio change request. 

  There are no additional fees charged for switching between portfolios.

  Changes made before 2 pm will be reflected in your portfolio the next working day. Please note that changes made after the cut-off time will only be reflected the day after next.

  Generally, we recommend not switching very often as this historically leads to lesser returns for you. In other words, stick to an investment plan with your goals in mind. 

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• Does Syfe subscribe to rights issues / preferential offerings on my behalf?

  For our REIT+ portfolios, Syfe will apply to rights issues or preferential offerings on your behalf.

  Our investment team decides which rights issue to subscribe to based on whether the rights issue benefits your portfolio or not.

  You don't have to top-up your account for these subscriptions. Whenever possible, we will use the cash balance in your portfolio to subscribe to these rights issues. If the portfolio cash balance is insufficient, some assets in your REIT+ portfolio will be sold to raise the necessary cash to subscribe to the rights issue.

   

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• What are the fees charged for the REIT+ portfolio?

  Syfe charges a management fee of 0.35-0.65% per annum for the REIT+ portfolio, depending on your pricing tier. Kindly refer to this article to learn more.

  Are there other fees apart from Syfe’s management fee?

  If you choose REITs with Risk Management, the bonds component of your portfolio is managed via the ABF Singapore Bond Index Fund in the REIT+ portfolio. There will be an ETF management fee charged by the ETF provider Nikko Asset Management.

  As the allocation to the ABF Singapore Bond Index Fund is typically around 25%, the fee payable amounts to about 0.06% annually, or $6 per $10,000 invested, which is quite low considering the asset type.

  Is this cheaper than investing in a portfolio of REITs myself?

  Most likely. To replicate the holdings of the REIT+ portfolio, there will be expensive brokerage charges, brokerage minimums and transaction fees incurred. Each time you make another investment or rebalance, you will incur these fees again. Besides, reinvesting dividends would be near impossible because of minimum lot sizes and the cost would be formidably high.

   

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