5 min read

Syfe Review (2022)

Syfe is an all-in-one digital management platform for simple, smart and accessible investing. Read whether it's the right robo-advisor for you.
Syfe Review (2022)

What is Syfe?

Syfe is an all-in-one digital management platform where everyday investors can access simple, smart and affordable investing, to grow wealth their way.

Syfe Products

Syfe offers two main products:

  • Syfe Wealth: a robo-advisor that offers a fully managed portfolio, custom portfolios, cash management portfolios, thematic investing and more
  • Syfe Trade: a brokerage platform which allows you to invest in US stocks and ETFs at low cost with fractional share investing

Syfe Wealth

Syfe Wealth is a robo-advisor that offers a variety of different investment portfolio options such as a fully-managed portfolio, custom portfolios, cash management portfolios, thematic investing and more.

Syfe Core

Syfe Core portfolios are investment portfolios that are well-diversified across stocks, bonds and commodities, with exposure to different sectors and geographies.

Investors can choose their risk appetite and Syfe will automatically allocate your funds across its Defensive, Balanced, Growth and Equity100 portfolios.

Syfe Satellite REIT+

Syfe REIT+ is a satellite portfolio that invests in 20 of Singapore’s largest REITs by tracking the SGX’s iEdge S-REIT Leaders Index, designed for investors looking for passive income from REITs.

Within REIT+, investors can opt for two different options:

  • 100% REIT portfolio
  • Risk-managed portfolio that combines at least 50% REITs with Singapore government bonds (ABF Singapore Bond Index Fund)

Syfe Satellite Select Themes

Syfe Select Themes

Select Themes is another part of Syfe's satellite portfolios allowing you to invest in a strategy of thematic investing across 5 themes:

  • ESG & Clean Energy: Stocks focused on ESG, clean energy, and water sustainability
  • Disruptive Technology: Companies focused on innovations like robotics, artificial intelligence and cloud computing
  • Healthcare Innovation: Investments focused on healthcare advancements such as genomics, biotechnology, and pharmaceuticals
  • China Growth: Stocks aligned to companies in China’s growing tech and consumer sectors
  • Global Income: Investment-grade and high-yield corporate and government bonds that offer high yields

Syfe Select Custom

For those that want to do a little bit of tweaks, Syfe's Select Custom allows you to do curated your own fully-customizable portfolio , where you can access over 100+ curated ETFs handpicked by the Syfe Investment team.

Syfe Cash+

Finally, there's Cash+, a cash management portfolio designed for your idle cash savings. It invests in a portfolio of high-quality money market and short duration bond funds that help you earn higher projected returns than bank deposits.

Investors can earn an annual yield of ~1.2% (variable) on their cash with no lock-ups, no minimum balance, no management fee, withdrawals in several days and 100% trailer fee rebates.

Syfe Trade

Syfe Trade is branded as Singapore's first neo-broker. It allows investors to invest in the US market with the following benefirts:

  • Fractional share investing of US stocks and ETFs starting from US$1
  • 5 free trades per month for the first 3 months, US$0.99 per trade thereafter
  • 2 free trades per month thereafter, US$1.49 per trade thereafter
  • Real-time stock quotes
  • SIPC protected up to US$500,000 against brokerage failure
  • Seamless integration with Syfe Wealth

The biggest differentiator for Syfe Trade is fractional share investing. Fractional share investing allows you to own a fraction of a share of any company, and buy it with a minimum of US$1 regardless of its share price, allowing you to maximize your value of your deposits.

How does Syfe invest?

Syfe Core portfolios invest in a portfolio of equities, bonds and gold in varying allocations, depending on the portfolio.

Syfe's portfolio methodology for Syfe Core are based on three guiding principles:

  • Asset Class Risk Budgeting
  • Smart Beta
  • Stable asset allocation

Unlike traditional portfolio allocations, Syfe adjusts portfolio weights using a process known as Asset Class Risk Budgeting – a risk-based method of portfolio allocation whereby the overall risk of the portfolio is distributed among various asset classes.

It then uses the concept of smart beta to optimize the equity component of the allocation, tiliting towards growth, value, volatility and certain countries like China which Syfe thinks that will provide better risk-adjusted returns.

Lastly, Syfe's strives to achieve long-term stability when it comes to asset allocation regardless of market conditions.

This asset allocation is considered discretionary in nature, as it does not follow any well-established practices of investment or portfolio management theory.

Why invest with Syfe?

Syfe offers a range of investment products and wealth management solutions at a fraction of the fee compared to traditional financial institutions.

For starters, it is the only platform that offers a pure Singapore REIT portfolio (REIT+) with no trading fees, no deposit and no withdrawal fees. This is a great choice for smaller investors with less cash to invest in REITs, but don't want to pay several dollars per trade.

It is also the only platform that allows investors to build their own custom US ETF portfolios, while paying Syfe an annual management fee based on the size of their deposits. Once again, this is more suited for smaller investors, as larger investors would often pick a traditional brokerage after hitting a certain deposit mass.

How much does Syfe cost?

Syfe charges an all-in management fee based on the value of assets that you hold with them.

For Cash+ portfolios:

  • 0% management fee
  • 100% trailer fee rebate

For Syfe Wealth portfolios excluding Cash+:

  • Portfolios are charged at between 0.4% to 0.65% annually depending on the minimum amount invested or current value of all investment portfolios

For Syfe Trade:

  • 5 free trades per month for the first 3 months, US$0.99 per trade thereafter
  • 2 free trades per month thereafter, US$1.49 per trade thereafter
  • $0 platform fees, withdrawal fees, account minimum or activity fees

Wrapping up

Syfe is a promising robo-advisor in Singapore with a diversified range of investment solutions.

While we think that it does not have the strongest Chief Investment Office across the robo-advisors in Singapore, it offers some unique products that certain groups of investors may find useful.

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