Investment

Syfe Cash+ $10,000 Portfolio Review (And 5 Reasons I’m Using It)

Do you want to make your idle cash work harder? Instead of writing about the recently trending topics, today’s post is going to be my review on Syfe Cash+ portfolio which I have been using since the start of the year.

As always, skin in the game – I don’t share any product or service that I don’t personally use. I first got acquainted with Syfe via their REIT+ portfolio which I started investing with during May 2020 (and a second 1-year Syfe review) when the Covid pandemic happened.

Launched with projected returns of 1.75% (non-guaranteed), the numbers have since been revised downwards to 1.5% as a result of changing global outlook.

Yes, it could go down even further. Kyith at Investment Moats has a nice chart on Singapore Savings Bonds (SSB) yields and it looks like 1.5% will hold for now.

To be honest, there is a plethora of options available when it comes to cash management solutions.

Syfe Cash+ does offer one of the higher projected SGD returns but how does it achieve it? And what does it mean for the investors like you and me?

Syfe Cash+ Transactions

I came to know about Syfe Cash+ in December 2020 and I contemplated putting in some of my idle emergency cash to put it to work for me.

I am already a customer of Syfe (via my $40,000 REIT+ portfolio) at this point so I was fairly familiar with their platform and mobile app.

Tested it out with a small $1,000 deposit before putting in another $9,000 to make up the five-figure amount.

  • 05 Jan 2021 – $1,000
  • 13 Apr 2021 – $5,000
  • 15 Apr 2021 – $4,000

Funds deposit went without a hitch and was promptly used to purchases the underlying funds in a matter of days.

Syfe Cash+ Review 2021

So, what funds are Syfe Cash+ invested in?

Syfe Cash+ Portfolio

The Syfe Cash+ portfolio is rather straightforward – it invests my funds in high-quality money market and short-duration bond funds that offer projected returns that are higher than bank deposits.

The three funds are –

LionGlobal SGD Money Market Fund (30%)

Description – Invests in high-quality short-term money market instruments and debt securities. Some of the investments may include government and corporate bonds, commercial bills and deposits with financial institutions.

LionGlobal SGD Enhanced Liquidity Fund (35%)

Description – Invests in a broadly diversified portfolio of high-quality debt instruments diversified across varying issuers and tenures while maintaining a weighted average portfolio credit rating of A- and a weighted average duration of around 12 months.

LionGlobal Short Duration Bond Fund Class (35%)

Description – Invests in a portfolio of Singapore and international bonds, high-quality interest rate securities and other related securities.

Low Risk + High Returns?

Observing the same theme that gets repeated again and again, that all three funds invest in high-quality instruments and securities – seemingly trying to get the point across and instill confidence in investors.

After all, this is a cash-management solution we’re talking about and we want our capital to be there when we need it, right?

As always, low risk doesn’t mean no risk. Want to know their underlying “high-quality” securities?

Since we know the three funds and we know how to use Google, right?

Check out their factsheets – Lion Global website is here.

Some snippets below in case you weren’t aware of the recent turmoil that affected some cash-management portfolios, since many of them use the same underlying funds –

Syfe Cash+ Review 2021 - Lion Global Fund Holdings 1
Syfe Cash+ Review 2021 - Lion Global Fund Holdings 2

What is this Huarong Finance I’m seeing?

If you weren’t aware of these types of risks prior to putting your money into Syfe Cash+, now would be a good time to do some homework to build up the necessary background knowledge.

Why I am using Syfe Cash+

[1] Extra cash-management option

There are various solutions available for cash-management and Syfe Cash+ is one of them that I’m using. In addition to Syfe Cash+, I also have five-figure accounts with Endowus (Cash Smart Enhanced and Ultra) and Singlife (if you’re applying, waitlist for new accounts).

At the moment, all three options are offering projected returns in the 1.5% to 2.0% range.

Yes, I know – they are nothing to shout about in the current climate. Besides, why should I bother when I made $16,000 in alternative income in the first quarter of this year?

Well, I guess I’m simple like that – I don’t mind getting a little more money for idle cash, and see next point –

[2] Liquidity and no lock-ups

At the end of the day, the security provided by having emergency cash funds availability guaranteed on short notice is priceless to me.

Yes, I won’t be needing this money 99.99% of the time.

Yes, the withdrawal amount could even deviate by a little due to the limited risks I’ve highlighted earlier.

But if I ever needed the money, I could have it REALLY quickly. Consider it a little diversification of risks from my other asset classes.

[3] No minimum investment amount

Unlike some other cash management providers, Syfe does not impose a minimum balance or investment amount which makes the process a little more flexible.

No need to jump through hoops or fulfil ever-changing requirements.

It also allows me to move and deploy my funds between Cash+ and REIT+, even temporarily, if the need arise.

[4] Syfe trailer rebate and fees

What fees?

  • 100% trailer fee rebate.
  • No Syfe management fee.
  • No entry or exit fee.

Enough said.

[5] Free transfers between Syfe portfolios

One added advantage that I really appreciated is having Syfe Cash+ and REIT+ within the same eco-system, albeit a silo-ed one.

This allows me to transfer funds between the two portfolios seamlessly without having to touch any of my funds outside of Syfe.

Is Syfe Cash+ Safe?

Safety (besides returns) is a top priority for everyone, isn’t it?

To re-iterate when I have mentioned already, I’ll copy-and-paste the following from Syfe official website to address this concern.

Syfe Cash+ Review : Safety

Closing thoughts

As investors, we need to manage our expectations.

For comparison, USD-denominated stablecoins in crypto yield upwards of 6% in custodian platforms such as BlockFi and Hodlnaut but you have to decide how much effort you are willing to put your idle cash to work and how much risk you’re willing to take.

Higher returns are always obtained by taking on additional risks.

In order to obtain Syfe Cash+ 1.5% projected returns in SGD, we would have to be comfortable with occasional volatility and hiccups that come along with relatively lower risk investment.

With that, I hope that my Syfe Cash+ review would be of some help to you. At no extra cost to you, my personalized referral code – TURTLEINVESTOR – would give your Syfe portfolio a headstart when you decide to start an investment portfolio with them! (How do I apply a promo code?)

To put it simply, you’ll have your first $30,000 managed for free for 6 months (terms and conditions).

Wait a minute – isn’t Syfe Cash+ free of management fees? That’s right! This promo code will still entitle you to the fee waiver if you end up trying the Syfe platform and liking the experience enough to start an investment portfolio with Syfe later on.

My on-going Twitter thread will continue to track my investment experience with Syfe – do check it out for my latest portfolio size!

Recommended pillar posts

As my portfolio grows, I’m increasingly relying on robo-advisors and start-ups in the personal finance scene to help manage my wealth. If you are thinking the same way, I have written a series of pillar posts – articles that range from 1,000 to 3,000 words that discusses my personal experience in detail. Perhaps they would be helpful!

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