Digital wealth management firm Syfe has collaborated with Singapore Exchange to launch a Reits portfolio that invests in SGX’s iEdge S-Reit 20 Index, according to a statement from the firm.
The S-Reit 20 Index consists of the largest and most tradeable Singapore Reits and includes sectors in the retail, industrial, office and logistics space.
The launch of the portfolio comes after the firm rolled out its “Reit+” portfolio in February, which consists of Singapore government bonds and 15 S-Reits. The firm believes that mixing Reits with fixed income instruments should defend investors against rising volatility.
Dhruv Arora, founder and CEO of Syfe, claimed that “thousands” of clients have signed up for the Reit+ portfolio. However, a common feedback was that some investors prefer to invest in an all-Reit product.
“They want to have freedom of choice between a risk-managed approach and a pure equities portfolio,” he said in the statement.
The firm claims that the new portfolio delivers an attractive dividend yield. According to its website, the S-Reit 20 Index delivered a dividend yield of 5.1% for the full-year 2019.
Separately, competitor Stashaway launched last year an income portfolio that invests around 35% in S-Reits.
In Singapore, having Reits in a mixed-asset product has also become a common feature of recently launched income-generating funds.
For example, Aviva Investors’ Sustainable Income and Growth Fund, which was launched in August, has 17.29% of its assets in Reits, according to its fund factsheet. Fullerton Fund Management also rolled out a mixed-asset product in May, which has 23.3% of its assets in listed real estate, its fund factsheet shows.
