Syfe REIT+ portfolio is not new, it was launched a few months back but what interests me this time round is that there is finally a 100% REITs (my favourite) portfolio. Syfe is collaborating with SGX to launch a portfolio that tracks the SGX’s iEdge S-REIT 20 Index.
I took a quick look and decided to give it a try. These are the reasons:
1. More Cost-Effective/Lower Fees
Similar to all the robo-advisors, Syfe charges a management fee based on the invested amount and it is very straightforward. 0.65% < $20k, 0.5% < $100k and a flat 0.4% > $100k. Let's look at a REIT ETF which we used to own - Lion-Phillip S-REIT ETF.
It has a management fee of 0.5% not including the trustee fees as well as the commission (0.08%-0.28%) paid to the brokers when we buy and sell the ETF. In addition, one has to take into account the minimum commission (at least $10) one will have to pay the broker which makes investing a small amount not cost-effective. Example, $500 investment with $10 minimum commission = 2% fee.
Comparing this with StashAway - SGD Income Portfolio which uses ETFs (fund management fees) + StashAway's own management fee (at least 0.8%), I would say Syfe REIT+ has lower fees compared to its competitors and is a lot more cost-effective.
2. Hassle-Free DCA (Dollar Cost Averaging)
Regular readers will know we have had plans to invest monthly/quarterly into STI ETF or IWDA. Unfortunately, we almost always fail to do that. As much as I don't advocate timing the market, I simply can't help it myself too. For instance, I did not buy any IWDA in April because I feel that the market should not have recovered so quickly and should have been worst. At the end of the day, emotion and psychology do affect one's investment decision. Hence, the solution is to remove one's emotion, simply GIRO/automate the monthly investment, and let compounding do its magic.
The other benefit is one will not have to deal with any corporate actions. The iEdge S-REIT 20 Index will be automatically adjusted for all corporate actions or corporate events, including rights issues, and mergers and acquisitions. You can refer to this for more information - SGX Corporate and Index Actions Policy. It is simply hassle-free.
3. Access to Financial Advisors/Planning
Syfe also provides financial advisors/planning for their Black (>$20k) and Gold (>$100k) tier customers. The Blue (<$20k) customers have access to the financial advisors for the first month too. Having someone there to consult/talk to and assuring that your investments are doing fine/you are on the right track is definitely good to have. I don't really need it but I have schedule one next week just for completeness of the review. Shall update this again.
I took a quick look and decided to give it a try. These are the reasons:
1. More Cost-Effective/Lower Fees
Similar to all the robo-advisors, Syfe charges a management fee based on the invested amount and it is very straightforward. 0.65% < $20k, 0.5% < $100k and a flat 0.4% > $100k. Let's look at a REIT ETF which we used to own - Lion-Phillip S-REIT ETF.
It has a management fee of 0.5% not including the trustee fees as well as the commission (0.08%-0.28%) paid to the brokers when we buy and sell the ETF. In addition, one has to take into account the minimum commission (at least $10) one will have to pay the broker which makes investing a small amount not cost-effective. Example, $500 investment with $10 minimum commission = 2% fee.
Comparing this with StashAway - SGD Income Portfolio which uses ETFs (fund management fees) + StashAway's own management fee (at least 0.8%), I would say Syfe REIT+ has lower fees compared to its competitors and is a lot more cost-effective.
2. Hassle-Free DCA (Dollar Cost Averaging)
Regular readers will know we have had plans to invest monthly/quarterly into STI ETF or IWDA. Unfortunately, we almost always fail to do that. As much as I don't advocate timing the market, I simply can't help it myself too. For instance, I did not buy any IWDA in April because I feel that the market should not have recovered so quickly and should have been worst. At the end of the day, emotion and psychology do affect one's investment decision. Hence, the solution is to remove one's emotion, simply GIRO/automate the monthly investment, and let compounding do its magic.
The other benefit is one will not have to deal with any corporate actions. The iEdge S-REIT 20 Index will be automatically adjusted for all corporate actions or corporate events, including rights issues, and mergers and acquisitions. You can refer to this for more information - SGX Corporate and Index Actions Policy. It is simply hassle-free.
3. Access to Financial Advisors/Planning
Syfe also provides financial advisors/planning for their Black (>$20k) and Gold (>$100k) tier customers. The Blue (<$20k) customers have access to the financial advisors for the first month too. Having someone there to consult/talk to and assuring that your investments are doing fine/you are on the right track is definitely good to have. I don't really need it but I have schedule one next week just for completeness of the review. Shall update this again.
Updated on 13th May 2020:
It was a pretty quick call (~15 min). Financial planning is only for Black and Gold customers and it will take about 45 min to an hour. I guess it is those kinds you do with an insurance agent where you provide salary, expenses, investment, goals, etc. Melvin said he can only provide basic financial advice for Blue customers such as whether one is saving enough for car, property, etc.
Honestly, I didn't find the session to be too useful as he doesn't have a framework/set of questions to determine the financial literacy of the customer in order to advise accordingly. However, the one good thing I got out of it is Syfe has plans to launch cash management and thematic portfolio in the future so that's something to look forward to.
4. Fractional Shares
Similar to StashAway, the shares you owned are in fractional amounts. This was not stated anywhere so I had no idea until I funded my account. This ensures that your money is efficiently invested too.
5. Dividends Automatically Invested
Dividends are automatically reinvested without any additional cost. One will have the ability to select payout once you become a Black tier and above customer (>$20k) where the dividends will be credited to your bank account on a quarterly basis.
Who is this suitable for?
People who like to invest in REITs but do not have the time/knowledge/interest to research and pick stocks. People who are new in their careers and would like to invest a small amount of money on a monthly basis. People who like dividends investing!
Stay tuned for monthly Syfe statement update going forward too :)
New Syfe customers will have their first $30,000 managed free for 6 months when they use our new referral code (KPOCZM). We will be receiving a $10 cash incentive for our portfolio if you invest $500 or more.
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Hi kpo,
ReplyDeleteMind to share how much you have invested into syfe as your initial capital and your monthly/quarterly contribution? Thanks.
Hi Nightmare_Angel,
DeleteMy initial capital was $500 (in order to get the $10 bonus) and planning to do at least $500 monthly :)
just used your referal!
ReplyDeleteYay! Thanks man! Just in time for the cash incentive too.
Deletei just saw your latest post. the older referal is much better! hope i get it!
ReplyDeleteShould have gotten it because KPOBONUS will become invalid after starting 16 October 2020 :)
Deletenot sure if it was mentioned in your other post. but did you chose risk management (ARI)?
ReplyDeleteand why not.
Haha. I was not interested in ARI/Syfe previously because I was already investing through StashAway which is doing a pretty good job managing risk. They are essentially same same but different framework/methodology in managing risk.
Deleteah right. so you selected without the ARI? i thought the 50% weightage of bond seems a tad high to me. which kinda defeats the purpose. but then, based on their backtesting, with ARI seems to have better returns, albeit marginally.
ReplyDeleteanw, i selected without ARI too
Oh. You are referring to the REIT+ portfolio with ARI. I thought you meant the global ARI portfolio. REIT+ 100% ma, so no ARI. The first version of REIT+ only had ARI and I wasn't interested because of the bond component. SG stocks already not moving much, still add bond @_@" lol
Deletemy sentiments exactly... haha
ReplyDelete