1) Assuming I invest $10,000 in the REIT+ portfolio and wish to withdraw 10% a year later, is the amount 10% of the current market valuation (and minus the expense ratio)? Or it's purely 10% of $10,000?
2) Is the basket of S-REITs in the portfolio static or will it change over time?
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Dhruv Arora
26 Feb 2020
Founder & Chief Executive Officer at Syfe
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Alex Chua
25 Feb 2020
Seedly student Ambassador 2020/21 at Seedly
Question 1
10% of current market valuation
Question 2
From what I understand from their portfolio, it will change over time.
They will adjust based on your risk profile
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Hi SK, thanks for your interest in the REIT+ portfolio. Regarding your first question, if you wish to withdraw 10% a year later, it will be 10% of your portfolio value in a year’s time. Alternatively, you can also choose to give us a fixed amount to withdraw, say $1,000, if that's what you prefer.
For your second question, the basket of S-REITs is not static. Our current selection of S-REITs is based on stringent selection criteria including liquidity, large market capitalization, reputable sponsors and managers, having a minimum free float of 20%, and sector diversification. We also impose a maximum weight cap on each of the 15 S-REITs we have in the portfolio to avoid overexposure to any one REIT.
Furthermore, we are not bound to a fixed number of S-REITS as long as we satisfy our selection criteria. We are continually reviewing the fundamentals of our REIT holdings according to our selection criteria and will rebalance as necessary among the individual REITs on a semi-annual basis as markets shift. This also means that if we do find S-REITs that match our criteria, we might add them to the portfolio.