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Syfe REIT+

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Old 03-02-2020, 11:01 PM   #46
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A lot of REITs have rights issues/ placement shares and individual investors can apply excess that is basically 'free money' because the excess shares are at a lower price than market price. You can check out the various REITs threads to see you can get quite a lot of excess. You can't do that with ETF or Syfe.

Since i'm on SCB PB 0.18% comms and no min comm, its quite easy for me to rebalance my 10 REIT holdings (down from 12 due to mergers...). REIT lovers should consider trying to get SCB PB so that you can manager your own REIT fund.
Completely agree, taking the SCB approach results in:

a) Higher quality portfolio
b) Potentially higher returns due to no bond component (albeit, perhaps higher volatility, but this doesn't matter if you are a long-term investor)
c) Lower fees
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Old 03-02-2020, 11:58 PM   #47
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This is the reply from Syfe on their REITS selection:

The REIT portion of our portfolio comprises 15 high quality Singapore listed REITs which includes Mapletree, Ascendas, Capitaland and others. The current selection criteria for the REITs is as follows:

Eligibility - SGX Listed REITs, SGD denominated

Liquidity Ė daily trading value as percentage of free-float market cap

Large market capitalization, reputed managers

Minimum free float of 20%

Low probability of default

The REIT portfolio thus comprises some of the most liquid and successful real estate managers with sustainable business models. We are continuously reviewing our screening and eligibility criteria and will keep clients posted as and when additional constraints are added.
1. Do they include all that pass the criteria? Or is it capped at 15?

2. How are the weights of each reit determined? Seems to be largely market cap based but not exactly
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Old 04-02-2020, 12:04 AM   #48
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Completely agree, taking the SCB approach results in:

a) Higher quality portfolio
b) Potentially higher returns due to no bond component (albeit, perhaps higher volatility, but this doesn't matter if you are a long-term investor)
c) Lower fees
A) How do you know it is higher "quality"? Theres no guarantee your selection and weights will have higher performance

B) again theres no way to predict who will do better

C) diy is definitely lower fees

D) same scenario as before which i see robo/managed portfolio having the advantage. When your non financially savvy and non IT savvy beneficiaries take over, it can be taken over easily and continue to be managed (through paying the fee).

When syfe aum grows, maybe they'll introduce a tier at 0.3% fee?
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Old 04-02-2020, 12:20 AM   #49
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Is ARI their selling point? seems to suggest this algorithm can optimise your portfolio better hence higher returns?
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Old 04-02-2020, 12:27 AM   #50
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Is ARI their selling point? seems to suggest this algorithm can optimise your portfolio better hence higher returns?
The main thing is the dynamic reits:bonds ratio. Algorithmic market timing
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Old 04-02-2020, 02:31 AM   #51
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I did consider Nikko but too many junk REITS inside and no cleansing process (or I not aware of).
What are the junk REITs of NikkoAM-StraitsTrading Asia ex Japan REIT ETF?
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Old 04-02-2020, 09:22 AM   #52
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I made a comparison for REIT+ vs Lion Phillip S REITS vs NIKKO AM REITS.
Seems like Syfe REIT+ is just a subset of Lion Phillip S REITS.
So what is the biggest advantage of REIT+ over Lion S REITS?
Please share your comparison, I would be very interested

Advantage of REIT+ is...
- lower cost (see my comparison below)
- risk management
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Old 04-02-2020, 12:01 PM   #53
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Seems like none at the moment. I want to compare against FTSE ST Real Estate Investment Trusts Index but cannot find its factsheet which there was in the past
Waiting for people with access to index data to share
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Old 04-02-2020, 12:41 PM   #54
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A) How do you know it is higher "quality"? Theres no guarantee your selection and weights will have higher performance

B) again theres no way to predict who will do better

C) diy is definitely lower fees

D) same scenario as before which i see robo/managed portfolio having the advantage. When your non financially savvy and non IT savvy beneficiaries take over, it can be taken over easily and continue to be managed (through paying the fee).

When syfe aum grows, maybe they'll introduce a tier at 0.3% fee?
On 1) Quality is in the eye of the beholder, just like Syfe uses a few criteria, we can as well. Typically for REITs you should look at stability of income stream (lease expiry, tenant quality and diversification, etc) and growth (sponsor pipeline), and generally quality of management. Everyone here would agree MCT is higher quality than say a Lippo REIT.

2) lower risk equates to lower returns for efficient portfolios, bonds like those offered will always result in lower returns. Syfeís goal is to reduce volatility. Volatility isnít so relevant for long-term investors...

On beneficiaries, itís a matter of preference... I wonít be passing administration rights along to non-tech / non-financially savvy people. If that is your situation, Robos arenít a solution, better talk to a financially planner and put your assets into something that can be administered by a 3rd party (eg set rules on withdrawal, investment etc.) so that you can be assured that the beneficiary will actually benefit.
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Old 04-02-2020, 01:02 PM   #55
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I think this should be compared to etf rather than diy

syfe/etf vs diy is another discussion

So for syfe vs etf, what do you guys think?
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Old 05-02-2020, 08:37 AM   #56
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Wonder why they do not just use iedge s-reit 20 index for their reits weighting. Didnt need to create their own proptietary screens

Need to pay a fee for the index?

https://www2.sgx.com/indices/products/sreit2
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Old 05-02-2020, 04:59 PM   #57
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Anyone attending their event later?
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Old 05-02-2020, 09:08 PM   #58
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Alright this is what i gathered which is not in the 2 links in first post.

- as a previous person posted, they have their own screening of the sreits, apply market cap (i deduced this but the current weights dont agree. Anyone knows the ans?), then cap an individual reit to 15% (this cap is not in that post and presentation but from hearing others talk to dhruv). Cmt+cct will be about there.

- their 15 reits has high similarity to iedge s-reit 20 index. They may in future just license the index and track that instead for the reits portion

- ARI only affects reits:bonds ratio. Max reits = 100%, min reits = 50%

- Downside risk is 15%. Why 2008 returned -27.76% is because min reits is 50%

- they will subscribe for rights when it makes sense, which is most of the time

Thats it for now.

Last edited by assiak71; 05-02-2020 at 09:48 PM..
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Old 07-02-2020, 05:55 PM   #59
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Article
https://www.syfe.com/magazine/how-to...through-reits/
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Old 08-02-2020, 01:41 PM   #60
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I think it would be good to see a backtest of their approach vs an ETF and REIT index to understand the impact of their Bond mechanism.
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