A Prudent Approach to Begin Your Journey with REIT

Mechanics of the Innovative REIT Portfolio

The world of Real Estate Investment Trusts (REITs) is thriving in Singapore, but the sheer diversity of options may confound those dipping their toes in for the first time. To alleviate this issue, an innovative digital wealth management solution introduces a comprehensive, risk-managed REIT portfolio, simplifying investors’ access to a diversified array of top-tier REITs. This unique approach is underpinned by a proprietary risk management strategy.

This REIT portfolio amalgamates two asset classes: equity and fixed income. The equity portion comprises 20 meticulously chosen, high-calibre REITs listed on the Singapore Exchange (SGX). These span a broad range of sectors, encapsulating industrial, retail, office, and residential. The fixed income component of the portfolio invests in the ABF Singapore Bond Index Fund, fostering diversification through exposure to reliable Singapore government bonds.

The portfolio’s hallmark feature is its risk-managed strategy. This aims to proffer higher risk-adjusted returns by recalibrating the portfolio’s exposure to REITs in response to shifting market conditions. Amid market turbulence or economic instability, the sophisticated algorithm auto-adjusts the REITs allocation, increasing the stake in government bonds. This measure mitigates risk and dampens portfolio volatility.

Merits of Investing in the Advanced REIT Portfolio

This REIT portfolio is particularly advantageous for its potential income generation. Mirroring traditional REIT investments, it seeks to provide investors a steady income stream through dividend payouts. The Risk-Managed REIT portfolio has documented impressive dividend yields over the years.

Investors also benefit from an option to auto-reinvest their dividends back into the portfolio, creating a compound interest effect over time. This strategy helps to enhance the value of the REIT portfolio, potentially amplifying the overall returns.

The convenience factor is another noteworthy advantage of this REIT portfolio. Investors needn’t fret about tailoring their portfolio, as the equity-fixed income composition is determined by a well-devised risk management strategy. This ensures equal returns for all investors and eliminates the need for individual stock picking or asset allocation decisions.

Cost Structure and Flexibility of the REIT Portfolio

The fees for the REIT portfolio are scalable from 0.35% to 0.65% per annum, contingent on the portfolio’s size. This comprehensive management fee encompasses free withdrawals and unlimited rebalancing. The fee is calculated daily and billed monthly, with a prorated charge for partial months. With no minimum investment or commitment period, investors have the liberty to commence with any amount and retract their funds whenever required.

This REIT portfolio is an exceptional choice for investors eager to venture into REITs but apprehensive about individual stock selection or asset allocation. The risk-managed approach and focus on income generation render it an apt selection for those seeking stability and regular dividends. However, seasoned REIT investors might derive more value from other portfolios that cater to their expertise level.

Singaporean’s Favourite Investment Tool

One of the reasons REITs are favoured among investors lies in the core concept of their operational model. A REIT is essentially a company that owns, operates, or finances income-generating real estate. By investing in a REIT, individuals can indirectly own these properties and earn a share of the income produced through real estate investment—without having to go through the process of buying, managing, or financing properties themselves.

Singapore’s REIT market is one of the most vibrant in Asia, due in part to its well-regulated environment and the strong performance of many listed REITs. The strength of the market, coupled with the transparency of the companies, attracts both local and international investors. This widespread attention and ensuing investment contribute to the liquidity of REITs in Singapore, making them an attractive asset class for diversification purposes.

Our innovative REIT portfolio takes this a step further by offering a diversified selection of top-performing REITs in various sectors, including industrial, retail, office, and residential. These are professionally managed by a risk management strategy that dynamically adjusts allocations between REITs and government bonds based on market conditions. This ensures stability and shields the investment from undue market volatility, thereby providing a smoother investment journey.

Moreover, REITs generally provide a higher yield compared to many other investment products due to their structure. By law, REITs are required to distribute most of their taxable income to their shareholders, making them high-yield assets. With an annual payout of between 4%-6%, our REIT portfolio not only aligns with this characteristic but also ensures a potential regular income stream for investors.

Investing in a REIT portfolio also mitigates the risks associated with property ownership. Instead of putting all your money into a single property, a REIT portfolio allows you to own a slice of several properties, spreading the risk and providing exposure to different sectors of the real estate market.


Wrapping things up

Investing in our REIT portfolio could provide you with a great passive income strategy, with its proven track record of yielding returns between 4%-6% annually.

To illustrate, if you desire a monthly passive income of $1,000, you would need an investment between $200,000 and $300,000. This figure is calculated based on the annual payout rate, where $200,000 at 6% gives $12,000 a year or $1,000 per month and similarly, $300,000 at 4% yields the same.

This is a typical strategy many of our clients employ to secure a steady stream of passive income.

We invite you to take the next step towards enhancing your financial future. Reach out to us today to learn how our REIT portfolio can align with your investment goals and assist in creating a reliable passive income source.

Don’t just dream about financial security – make it a reality with our expertly managed REIT portfolio.

Contact us now and start your journey towards achieving your financial goals.


Benjamin Low
Benjamin Low

Benjamin is known as The Passive Income Guy. He has helped hundreds of people to build passive income. He is also a member of the Million Dollar Round Table, and Certified Financial Planner™ (CFP®) and Certified Private Banker (CPB).

Leave a Reply

Your email address will not be published.