Syfe just updated via email about a rebalancing of REIT+ portfolio in line with the semi-annual review of iEdge S-REIT Leaders Index this month.
Below is the updated REIT+ constituent list based in weighting as of 14 Sep 2022.
Source: Syfe email broadcast
Notable changes
- Addition of Far East Hospitality Trust and SPH REIT following the merger of MCT and MNACT to create MPACT effective 21 July 2022.
- Reduction in weights of Industrial REITs, e.g. Ascendas REIT (to 10% cap), MIT, Keppel DC REIT, ESR REIT, AIMS APAC REIT. Logistics REITs weights were maintained.
- Increase in weights of Retail, Hospitality and Office REITs, e.g. Keppel REIT, FCT, ART, Lendlease REIT.
Rebalancing methodology
Digging a little bit into the methodology to help understand the how the rebalancing of the iEdge S-REIT Leaders Index is done, here are the steps:
- Constituents are first weighted by free-float market cap
- Then, a liquidity enhancement is performed where constituents are assigned an adjustment/modifier according to its liquidity
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