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

monthly updates

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

So February has came and gone now. And wow February has been a roller coaster month because of the whole virus situation.

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.

Mr Budget
Position Added: MTQ, Syfe Global Equities, Syfe REIT+
Stop Loss: Sembcorp Industries

Mrs Budget
Position Added: MTQ, Comfort Delgro, DBS, Syfe Global Equities, Syfe REIT+, Stashaway
Take Profit: N/A

Here’s a graphical representation of what we have done this month towards our financial goals:

February is a big month of investing especially for the Mrs. Both the Mrs and I have initiated a position in MTQ, after first discovering about it from Brian of Forever Financial Freedom.

Agreeing with mostly what he outlined, and seeing that we don’t have an exposure in the oil and gas sector, we initiated a small position in MTQ. The stock went up shortly but came down again when the market reacted to the COVID 19 virus.

On top of MTQ, Mrs Budget has also taken the opportunity of the market correction to scoop up both DBS and Comfort Delgro, two blue chip stocks that we are confident will be here to stay for a long time.

As we have also mentioned in our earlier post, we are slowly putting in some funds into Syfe (and additionally into Stashaway for the Mrs) so that this will be our “emergency fund” which we viewed as the professionally managed portion of our portfolio.

In terms of position sold, Mr Budget also manage to close his position in Sembcorp, after holding on to this shit stock, pun intended, for over 1 year before the price plunged even further.

Mr Budget has no confidence in the financials and fundamentals of this stock and there seemed to be no price catalyst / innovation for the company in the near future. Hence, this is a good time get some cash back to build up his war chest to buy other attractive stocks right now. Overall, Mr Budget registered a loss of 22% on the counter over a 1 year period. 

Our net worth continue to grow and excluding our properties, we are hitting S$583,000 in net worth (including CPF). Our joint net worth last month was at S$560,000.

Updates On Portfolio due to COVID

If you notice from our net worth, our net worth still grows steadily despite the COVID virus. That is partly because our exposure to equity is still kept at a manageable % of our overall portfolio. A sizeable portion of our net worth is still tied to CPF, something which we foresee to be the case for a long long time.

For Mr Budget, his equities investments forms less than 40% of his total portfolio, and part of the equities losses this month is offset by the gains of the US equities in end Jan / early February.

For Mrs Budget, the equity exposure is even lower at 28%.

In terms of the counters that we are looking at, we are very tempted to average down on Hong Kong Land because it is trading at a very very attractive price now.

Other counters we want to average down is also Lendlease and MNACT, and new counters Mr Budget is also looking at includes Comfort Delgro, CCT, and Singapore Exchange.

US equities side, we are still very interested in Bookings, and are actively monitoring Mastercard and Adobe

If only we have in excess of S$50,000, we would just scoop up all of these stocks now. But unfortunately, our bullets are limited, and my sense is that Mr Budget will average down on Hong Kong Land if prices hit $4.80. Let’s see what happens after their earnings in the next few days.

There’s someone in some telegram group now saying that the current price correction is making investors behaving like a child in a candy store, and that is exactly how we are feeling now. 

However, we are also mindful that we might just be seeing the start of a recession, because the full impact of the virus is not felt by the global markets yet.

Hence we are cautious, and not actively deploying all of our capital in the market yet. For this month, we may only be investing in our regular robo investments. 

In the meantime, stay safe everyone, and happy hunting!

Monthly Tracking

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

A Look At Syfe’s New Robo-REIT+ Portfolio

Recently, Singapore’s Roboadvisor Syfe has just announced the launch of their new real estate portfolio.

As the name suggest, with the new Syfe REIT+, you get to invest in a basket of REITs in Singapore.

The portfolio also combines Singapore listed REITs and Singapore Government Bonds and rebalances both the composition based on market sentiments.

For example, during good market condition, Syfe will auto rebalance the portfolio such that there is a higher proportion of REIT and a lower proportion of bond.

Here’s a look at the Syfe REIT+ composition breakdown: 

At first glance, the Syfe REIT+ portfolio looks really enticing and sounds somewhat too good to be true!

With just a fraction of cost from as low as S$100, you can get access to all the high quality Reits in Singapore, such as Ascendas REIT, Keppel DC REIT, Mapletree Logistics / Industrial Trust and more. Investing via Syfe means you dont have to pay any additional transaction fees or CDP fees as the stocks will be hold as a custodian stocks for you.

Individually, these counters are trading at high PEs now and you will have to fork out a lot of money to own all these REITs. To buy all these individual stocks, you will have to pay the individual stock transaction fees and CDP fees. These fees will definitely add up and will not make sense for small positions of S$1000 – S$3000. I’ve previously done a calculation for the fees here.

Also Read: What Is The Ideal Stock Amount To Buy For The Brokerage Fees To Make Sense

So from a fees perspective, you will end up saving a lot just by buying these REITs via Syfe REIT+.

Returns wise, here are the projected 15 year returns provided by Syfe REIT+

The returns are also in the range of 6 – 10% IRR for a 15 year forward looking projection – and that sounds really attractive!

When I compared the returns to the global equity portfolio, the Syfe REIT+ is projected to also provide almost similar returns as the global equity portfolio, and this gave me quite a shock – Shouldn’t the global equity portfolio provide a higher return since they are a higher risk instrument and comes with more downside risk? 

For context, here’s the projected returns for the Syfe Global Equity portfolio with 25% downside risk:

Syfe Global Equity Projected Returns

The most likely returns for the global equity is at S$321,164 while it is S$315,874 returns for the Syfe REIT+ portfolio!

There are other articles that says that actually REIT as a investment class is behaving more like equities now since they are providing equity-like returns, and most REITs in Singapore has been benefitting from a low interest environment over the past few years. Hence we are seeing REIT as attractive investment options in Singapore. 

Knowing that, will we shift our monthly contribution from Syfe global equity to Syfe REIT+?

To be honest, I’m not entirely sure.

I do manage my own portfolio of REITs at this point, and can definitely use more global diversification, hence I started a RSP into Syfe’s global equity portfolio. 

While the new Syfe REIT+ provides a really attractive alternative for me to continue my exposure to Singapore’s REIT market, I guess for now it makes more sense to continue my RSP into the global equity portfolio as I have a relatively high exposure to Singapore equities and REITs. 

Here’s a look at my current portfolio composition:

Cash18.21%
Pension Fund36.03%
Bond1.64%
Global Equities13.85%
SG Equities & REITS27.03%
Alternatives2.60%
Syfe0.65%

However, if you are looking to get really high quality Singapore REITs at a low cost, you should definitely check out Syfe REIT+. If I don’t already own some of the REITs in the Syfe REIT+ portfolio, I would definitely start a RSP into the new Syfe REIT+ portfolio.

If you do sign up for Syfe, do use my Syfe Referral Code: SRP6X8B8Y and you will receive S$50 when you invest with Syfe.

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

monthly updates

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

So January has came and gone now.

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.

Mr Budget
Position Added: MNACT, Syfe, CPF SA Take Profit: N/A
Mrs Budget
Position Added: N/A Take Profit: N/A

Here’s a graphical representation of what we have done this month towards our financial goals:

Earlier this month prior to the Wuhan virus outbreak, Mr Budget initiated a position on Mapletree NAC Trust as the Hong Kong protest seems to be recovering, and the trust price seems to be attractive enough to warrant a position,

However, the price dropped further after the virus outbreak, hence it is in the red now. We are not too worried about it as the trust has a strong sponsor and we foresee the price to recover in the future.

As shared in our previous update too, Mr Budget contributed S$7,000 to CPF SA for FY 2020 to leverage on the higher interest rate returns. He also started a monthly investment plan with Roboadvisor Syfe. 

For Mrs Budget, there is not much changes this month. However, she will also be contributing to her CPF SA in the next few days when we do our monthly finance reconciliation. 

Our net worth continue to grow and excluding our properties, we are hitting S$560,000 in net worth (including CPF). Our net worth increases by a fair bit as we received some bonus from our employers end last year, along with the corresponding contribution to our CPF accounts.

Our targetted joint net worth which we set for ourselves by end of next year is S$800,000, and it seems like we may need to revise the target since we will have more property mortgage commitment in the net 24 months. To hit S$800,000 of joint net worth, we will each need to grow our net worth by S$60,000 this year and next year. Let’s see if we are able to do that. 🙂 

For now, the Wuhan virus outbreak seems to be getting worse every day, and things will be worse before they get any better. We probably won’t be doing anything much next month, and will start to look at some counters in Singapore and Hong Kong once things have stabilise a bit.

In the meantime, stay safe everyone!

Monthly Tracking

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

Of Wuhan Virus, Syfe’s New Real Estate Portfolio, And CPF.

Hi guys, Mr and Mrs Budget has been away last week for our honeymoon, hence the lack of articles. But we are now back with our regular scheduling. 

The biggest news this past week is definitely the Wuhan virus which has gotten many people worried. The Mrs and I are equally worried too and we are one of the many kiasi-s who have started wearing our mask when we take the public transportation. 

Of course, the virus have spooked the market too, with our portfolio registering a 3% decrease in one day yesterday! They dropped as fast as they rose! However, we have not taken any actions and are keeping the faith that this too shall pass and that our portfolio will continue to return us the annual dividends.

Some of the counters that we are eyeing this year are the usual suspects of high quality REITs which we find the prices are still sky high.

Notably, we are looking at the Mapletrees and the Ascendas, as well as Keppel DC REIT.

The good thing is that, our friends at Syfe told us that they are launching a new fund focusing on REITs in Singapore. The new Real Estate portfolio is slated to launch in February, and we might choose to put some money in it if we like what we see. According to the investment manager, the way the portfolio is constructed, one will be shielded from major corrections! Sounds too good to be true, but let’s see. 🙂

If you are looking to join Syfe, here’s my referral code: SRP6X8B8Y

Besides that, Mr Budget has also received a lot of great feedbacks with regards to my CPF calculation. Some readers pointed out that the calculation is slightly wrong. It makes more sense to max out the Medisave first so excess Medisave will overflow to our Special Account up to the full retirement Sum. There is also a cap on the RSTU to our SA account. 

Another great pointer pointed out was that one should keep some money in the OA and not empty out the OA to SA because of the cap on the RSTU so that in the future, we can continue to enjoy the tax relief of RSTU, hence it makes more sense to drag out the time where you hit your full retirement sum of the SA account. We will probably be doing another article and scenario play this. 

We have also received our CPF annual statement as with everyone else. In 2019, the total interest credited was S$3063.91 as compared to a total of S$1029.86 interest credited in 2018. This represent a 300% increase! This is not far off from our projections.

Mr Budget’s 2018 CPF Interest Received (highlighted in yellow)
Mr Budget’s 2019 CPF Interest Received (highlighted in yellow)

Do keep a look out for more of our articles in the next few days for our monthly updates! In the meantime, happy Chinese new year to all, and don’t let the virus dampen our festive mood. 🙂 

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