Our Take On Syfe’s New Equity100 Portfolio And How We Will Be Investing In It

So one of the relatively bigger finance news these few days is the launch of a new 100% global equity portfolio by Syfe, called the Equity100 portfolio

As one of the early adopters of Syfe, we are definitely excited when we hear this news.

One of the reason why we are excited is for this new 100% equity portfolio is because we are currently invested in the existing global equity portfolio by Syfe. However, due to its built in risk management portion, the portfolio will auto rebalance itself during period of high volatility, resulting in a higher allocations to bonds.

Here’s our current global equity portfolio composition with risk management:

Syfe Global Equity Portfolio 25% Downside Risk Portfolio Composition 02072020

What we would have preferred instead, is for a full equity allocation regardless of the market volatility. While lower risk is of course better for most investors, for Mrs Budget and myself, we are able to stomach more risk on our portfolio as we treat our CPF as the “bond” portion of our portfolio.

Hence for our roboadvisor, we would very much prefer a full equity portfolio – and the new 100% global equity portfolio Equity100 definitely answers that for us!

According to the announcement, Equity100 invests in ETFs which holds positions in some of the biggest names in the world now: the Amazons, Facebooks and Alibabas of the world.

Here’s a quick look at the portfolio allocation:

Equity100 – Lower Risk And Cheaper Alternative For Us To Buy US Technology Growth Stocks

The same reason why we are putting our money into the Syfe REIT+ portfolio, the Equity100 provides us with an affordable and professionally managed solution to gain access to all the US equity counters which are probably too expensive for us to buy individually now.

Take a look for Amazon for example, of which Equity100 has about 5.21% holding now – Amazon just reached another ATH yesterday, hitting over USD2800. Apple too is at its all time high, and while these are counters that we would absolutely love to hold individually, it would be too expensive for us to buy them now.

Hence the Equity100 portfolio provides us a “lower risk” alternative to holding onto these high growth stock and riding on the potential upside.

While there are no active “risk management” for Equity100 (shifting to and fro from equities and bonds), Equity100 touts a smart beta strategy, which means the portfolio might adjust their allocation to ETFs with higher potential returns due to market movements.

For example, say the next big theme is EV, I’d think Equity100 will add some allocation on ETFs with this theme and bring up the overall return of the portfolio.

Because of these reasons, Mrs Budget and I have added a new Equity100 portfolio and we will be doing a monthly contribution into this portfolio. We have contributed our first S$1,000 into Equity100.

Monthly DCA Into Syfe REIT+, Equity100 and Syfe Global Equity

Of course, one of the main question that even we ask ourselves is that, with 3 portfolios available on Syfe now, how should one DCA monthly into Syfe?

An investor can choose to invest in any of these portfolios

While there are no right answer to this, we can share our point of view.

For Mrs Budget and myself, we treat Syfe as our “emergency fund” or a joint portfolio that we may use for future purposes, for example, paying for our kid’s education, or simply as a supplementary retirement fund.

Individually, we also have active bank balances which serves as our day to day expenditure wallet, as well as our war chests.

Hence our time frame for Syfe is for at least 10 years. Maybe more. And we probably wont be touching it unless absolutely necessary.

So for Syfe, we set aside S$1,000 each for a monthly DCA, hence we are allocating a total of S$2,000 monthly to Syfe.

The S$2,000 will be split according to the following ratio:

Portfolio10Y ReturnMonthly DCA
Global Equity Portfolio9.4%S$500
REIT+N/AS$500
Equity10013.4%S$1,000
Total:10% (est)S$2,000

Currently, we will be allocating S$1,000 (50%) allocation to the Equity100 portfolio, and S$500 (25%) each to the Global Equity Portfolio as well as the REIT+ portfolio.

This is in line with what we mentioned previously, where we are looking to increase our overall exposure to US stocks as we are currently slightly overweight in Singapore stocks now. Hence taking up the Equity100 portfolio on Syfe will tilt our allocation to US stocks slightly.

Also Read: What We’ve Learnt This COVID19 – Using US Stocks To Boost Overall Portfolio Gain

Depending on the individual portfolio’s annual return, as well as our own portfolio’s composition where we actively invest in individual stocks, we may shift our Syfe monthly allocation among the 3 portfolios.

As we are actively looking around for US stocks now, and if we end up with an overweight position in US stocks, we may then shift our Syfe allocation to get more Singapore REITs.

With the monthly S$2,000 contribution and a 10% total estimated return, hopefully we will be able to see a decent return 10 years later, estimated at an ending portfolio of S$450,296 with a total contribution of S$240,000.

Will we be able to hit that returns? Only time will tell! And 10% PA is a very aggressive and optimistic target! And the past 10 years we are in a bull market, which has probably ended.

Looking to invest via Syfe? You can use our referral code: SRP6X8B8Y when you create an account.

We would both get $10 to $100 depending on your first deposit amount, and you’d receive your bonus within 5 business days.

Like our Facebook Page for more articles like this: Mr Mrs Budget

monthly updates

What Have We Done This Month Towards Our Financial Goals – June 2020

So June has came and gone now. What this means is that, first half of 2020 is now over, and we are moving into the second half of 2020. Time really flies!

For the whole of June, both Mrs Budget and myself had been mostly staying at home due to the circuit breaker. However, we have also started going back to the office about once to twice a week for office matters and meetings.

While everyone else is doing a monthly portfolio update, we thought it is more meaningful to document what we have done this month towards our financial goals.

Portfolio Transactions

Mr Budget
Position Added: MNAC, Prime US Reit, Syfe
Take Profit: N/A

Mrs Budget
Position Added: MNAC, Prime US Reit, Syfe
Take Profit: N/A

For June, in our previous update, we mentioned that we averaged down on Mapletree North Asia Trust, and initiated a position on Prime US Reit, both of which were still trading at below their NAV.

We have also continued to contribute to our roboadvisor Syfe this month.

In June, we have been tracking the price movements over the last few weeks, and what we’ve noticed is that the market is moving sideways now, and the bulls seems to be losing momentum.

This is expected since May we saw a strong rebound for the various stock prices. With the slow down in price momentum, we probably wont be buying any counters in the Singapore market unless something exciting comes. We may initiate some positions in the US market for the long run and also to increase our US equity allocation.

Home Equity Loan

Regular followers of Mr and Mrs Budget may have noticed that we have briefly included a new portion of home equity loan towards our monthly war chest update last month.

Since April when the market crashed, and along that the drop in interest rates, Mrs Budget has been trying to get a home equity loan so that we can leverage on that as a cheap source of fund to invest in the market.

We are happy to share that the loan has been approved, although the quantum is lesser than what we had hope for. The rate that we were offered by OCBC was 1.6% for 2 years, and Mrs Budget will be taking that up.

The rate is really quite affordable and even if Mrs Budget were to use that whole loan quantum and put it in CPF, the returns will more than double the loan interest.

So if anyone is able to do this, we’d recommend taking up an home equity loan. A few people we know are doing this to leverage on the low interest rate environment now.

The home equity loan process however, took way longer than we thought – since we applied in April, we only received the approval in end June, and are told that the funds will only be disbursed in another 1 – 2 months.

We may probably be sharing an article on the whole process and our further thoughts on that.

Net Worth Updates

Our net worth continue to grow this month, due to contribution from our salary as well as the continued rebound of stock prices.

Our combined net worth is now at S$718,000, including CPF but excluding our property and mortgage. This is up from S$690,000 last month, a change of +S$28,000.

The growth rate these past few months is quite high as we have lowered our spending significantly, and Mr Budget’s Malaysia mortgages are halted.

However, we are mindful that these number may change as we have a significant exposure to the equity market, which currently stands at a total equity exposure of S$280,000.

War Chest Updates And Watchlist

With the various transactions, here’s an update on our war chest:

Mr Budget War ChestS$90,000
Mrs Budget War ChestS$40,000
Mrs Budget Home Loan War Chest (pending)S$70,000

As our war chest has been increasing, and our cash position % is getting slightly larger than what we would ideally like, hopefully we are able to deploy our war chest soon. Counters on our watch list:

  1. Ascendas REIT
  2. Keppel DC REIT
  3. IREIT Global
  4. SGX
  5. DBS
  6. Mastercard
  7. Adobe
  8. Amazon
  9. Square
  10. Tesla (NEW)

We’ve added Tesla into our wishlist as a speculative counter, and may initiate a small speculative position if any opportunity arise.

Stay safe everyone, and happy hunting! We’d be happy to also hear your recent purchases too so that we can keep an eye on them too.

Monthly Tracking

Looking to invest via Syfe? You can use our referral code: SRP6X8B8Y when you create an account.

We would both get $10 to $100 depending on your first deposit amount, and you’d receive your bonus within 5 business days.

Like our Facebook Page for more articles like this: Mr Mrs Budget

Syfe Portfolio Update – May 2020

Frequent followers of Mr and Mrs Budget will know that Mr Budget had started a regular savings plan with Syfe, a relatively new roboadvisor in Singapore.

The main reason why Mr Budget decided to go for Roboadvisor is because he is looking for a more affordable way to invest in multiple baskets of ETFs to get more diversification.

Another reason is that, Mr Budget views roboadvisors as the professionally managed portion of his portfolio since he does not have any financial advisor.

As Roboadvisor firms have professionals looking at the funds daily, I’d think the results won’t be that bad as compared to our own DIY portfolios.

So here’s Mr and Mrs Budget’s monthly Syfe portfolio summary.

May 2020

Global Equity Portfolio
Total invested: S$5,572.12
Total Contribution this month: S$0
Current Value: S$5,497.84
Portfolio Return: -1.33%
Downside Risk: 25%

REIT Portfolio
Total invested: S$6,670.01
Total Contribution this month: S$2000
Current Value: S$6,903.46
Portfolio Return: 3.5%

Due to the rebound in market share prices, our Syfe portfolio also staged a rebound in return. Coupled with referral fee bonuses, our global equity portfolio is slowly breaking even, and our REIT portfolio have returned to the positive +3.5% return so far.

We are not too concerned about the returns as we will continue to put in regular contribution to Syfe monthly, and hopefully 5 to 10 years later we will be able to see the returns. 

For our REIT portfolio, we may be opting for the full REIT allocation instead of the current REIT + bond allocation as REIT prices have all rebounded back to decent levels the past 1 week.

Will Syfe give us a good return, better than what CPF SA is giving us? Only time will tell. 🙂

You might be interested in previous months update too:

Global Equity:
January 2020: S$2009.00 (-0.25%)
February 2020: S$4248.60 (-6%)
March 2020: S$4918.86 (-11.09%)
April 2020: N/A
May 2020: S$5,497.84 (-1.33%)

REIT+
February 2020: S$3075.90 (-2.35%)
March 2020: S$4333.10 (-6.82%)
April 2020: N/A
May 2020: S$6,903.46 (3.5%)

Based on our records (missing April as we did not contribute to Syfe), the negative performances are now slowly moving into a positive return to our portfolio, so that’s definitely great news.

Looking to invest via Syfe? You can use our referral code: SRP6X8B8Y when you create an account.

We would both get $10 to $100 depending on your first deposit amount, and you’d receive your bonus within 5 business days.

Syfe Portfolio Update – March 2020

Frequent followers of Mr and Mrs Budget will know that Mr Budget had started a regular savings plan with Syfe, a relatively new roboadvisor in Singapore.

The main reason why Mr Budget decided to go for Roboadvisor is because he is looking for a more affordable way to invest in multiple baskets of ETFs to get more diversification.

Another reason is that, Mr Budget views roboadvisors as the professionally managed portion of his portfolio since he does not have any financial advisor.

As Roboadvisor firms have professionals looking at the funds daily, I’d think the results won’t be that bad as compared to our own DIY portfolios.

Since February, both Mr and Mrs Budget has combined our Syfe accounts together so that our returns (or losses) will be compounded.

So here’s Mr and Mrs Budget’s monthly Syfe portfolio summary.

March 2020

Global Equity Portfolio
Total invested: S$5532.12
Total Contribution this month: S$1000
Current Value: S$4918.86
Portfolio Return: -11.09%
Downside Risk: 25%

REIT Portfolio
Total invested: S$4650.00
Total Contribution this month: S$1500
Current Value: S$4333.10
Portfolio Return: -6.82%
Current Dividend Yield: 4.57%

So far both the portfolio registered a negative return due to the market crash in the past 4 weeks. Since investing in Syfe in January, the returns has continued to register a downward returns due to bad market condition.

We are not too concerned as we will continue to put in regular contribution to Syfe monthly, and hopefully 5 to 10 years later we will be able to see the returns. 

Will Syfe give us a good return, better than what CPF SA is giving us? Only time will tell. 🙂

You might be interested in previous months update too:

Global Equity:
January 2020: S$2009.00 (-0.25%)
February 2020: S$4248.60 (-6%)
March 2020: S$4918.86 (-11.09%)

REIT+
February 2020: S$3075.90 (-2.35%)
March 2020: S$4333.10 (-6.82%)

Looking to invest via Syfe? You can use our referral code: SRP6X8B8Y when you create an account.

We would both get $10 to $100 depending on your first deposit amount, and you’d receive your bonus within 5 business days.

Like our Facebook Page for more articles like this: Mr Mrs Budget

Syfe Portfolio Update – February 2020

Frequent followers of Mr and Mrs Budget will know that Mr Budget had started a regular savings plan with Syfe.

The main reason why Mr Budget decided to go for Roboadvisor is because he is looking for a more affordable way to invest in multiple baskets of ETFs to get more diversification.

Another reason is that, Mr Budget views roboadvisors as the professionally managed portion of his portfolio since he does not have any financial advisor.

As Roboadvisor firms have professionals looking at the funds daily, I’d think the results won’t be that bad as compared to our own DIY portfolios.

In February, Mr and Mrs Budget also started investing into Syfe’s new REIT portfolio REIT+. As both Mr and Mrs Budget are looking at monthly contribution into Syfe, we have decided to combine our Syfe account together so that our returns (or losses) will be compounded. 🙂

So here’s Mr and Mrs Budget’s monthly Syfe portfolio summary.

February 2020

Global Equity Portfolio
Total invested: S$4520.00
Current Value: S$4248.60
Portfolio Return: -6%
Downside Risk: 25%

REIT Portfolio
Total invested: S$3150.00
Current Value: S$3075.90
Portfolio Return: -2.35%
Current Dividend Yield: 4.57%

So far the portfolio registered a negative return as the market entered a correction zone over the past 2 weeks.

We are not too concerned as we will continue to put in regular contribution to Syfe monthly, and hopefully 5 to 10 years later we will be able to see the returns.

Will Syfe give us a good return, better than what CPF SA is giving us? Only time will tell. 🙂

You might be interested in previous months update too:

Global Equity:
January 2020: S$2009.00 (-0.25%)
February 2020: S$4248.60 (-6%)

REIT+
February 2020: S$3075.90 (-2.35%)

Looking to invest via Syfe? You can use our referral code: SRP6X8B8Y when you create an account. We would both get $10 to $100 depending on your first deposit amount, and you’d receive your bonus within 5 business days. 

Like our Facebook Page for more articles like this: Mr Mrs Budget

Syfe Portfolio Update – January 2020

Frequent followers of Mr and Mrs Budget will know that Mr Budget had started a regular savings plan with Syfe, a relatively new roboadvisor in Singapore. 

The main reason why Mr Budget decided to go for Roboadvisor is because he is looking for a more affordable way to invest in multiple baskets of ETFs to get more diversification.

Another reason is that, Mr Budget views roboadvisors as the professionally managed portion of his portfolio since he does not have any financial advisor. As Roboadvisor firms have professionals looking at the funds daily, I’d think the results won’t be that bad as compared to our own DIY portfolios.

So here’s Mr Budget’s monthly Syfe portfolio summary.

January 2020
Total invested: S$2010.00
Current Value: S$2009.00
Portfolio Return: -0.25%
Downside Risk: 25%

Portfolio Breakdown

Not too concerned about the returns at this point as this will be a long term investment. It will take time for the portfolio to see some returns. 

According to Syfe’s forecast, based on a monthly RSP of S$1000 for 15 years at max risk, the optimistic expected return with a total capital of S$181,000 will be S$400,831, or an IRR of 10.856%. For the conservative return of S$245,971 after 15 years, the IRR will be 4.85%, still higher than the bank’s interest rate or even comparable to CPF. 

Will we be able to get the 10.85% return? Only time will tell. We will be tracking the returns monthly and will update here accordingly. 🙂

Syfe Referral Code: SRP6X8B8Y

Like our Facebook Page for more articles like this: Mr Mrs Budget