With the inconsistencies update from SGX of the iEdge S-REITS 20 chart, how would we be assured that Syfe are mapping its portfolio as closely as claimed?

Hi Zhiyang, our REIT+ portfolio aims to closely replicate the performance of the SGX iEdge S-REIT Leaders Index. You'll notice that while the index contains 26 REITs, REIT+ holds 20 REITs.

This is because we want to balance between fully replicating the index, i.e. including all the constituent REITs, and building an optimized portfolio with an eye on the portfolio's tracking error to the benchmark index.

In this instance, we have used an optimized portfolio of 20 REITs with a tracking error of <0.5% p.a. to the iEdge S-REIT Leaders Index.

With our optimized portfolio of 20 REITs, we have sought to not only minimize the tracking error, but also enhance trading liquidity, i.e. minimizing trading costs and thus improving portfolio performance.

I hope this clarifies!

I'm convinced that they will do as good as they can. It can never be 100% aligned.​​​