Risk-on sentiment defined markets in 2025, culminating in an “everything rally” that saw all major asset classes deliver positive returns for the first time since the pandemic. Despite significant crosscurrents—most notably heightened trade tensions in the first half as US tariffs reached levels last seen in the 1930s—markets proved resilient. Equity performance broadened meaningfully. Fixed income also benefited from easing inflation fears, rate cuts by major central banks, and a weaker US dollar, helping global bonds return +8.2%.
Income+ Performance
Income+ Pure and Enhance continued to show resilience this month with a +0.28% and +0.59% increase respectively. 2025 full year returns were 8.0% and 9.6% respectively. With our selected best-in-class funds and Syfe’s active management, Income+ managed to ride on the movements in the bond market, offering stable yield potential while managing downsides.
Global bond markets rallied in December. 3 key factors driving the rally were –
1) Softening US Labor Data, 2) Fed Rate Cut & Easing Expectations, and 3) Weaker US Dollar.
In a rate cut cycle like now, investor demand for viable income strategies continues to grow. Syfe Income+ remains a popular choice among those seeking steady monthly payouts, delivering a consistent 6 – 8.6% p.a. Payout, with 100% achievement rate since inception. As yields on cash and short-term deposits keep declining, more investors are turning to Income+ as an alternative to traditional cash options while managing the risks, with the objective to maximise the yields.
Performance Comparison vs Benchmark
Looking Ahead
Uncertainty is a constant in investing, but so is opportunity. Here’s what our investment team is focused on:
- The Fed’s median projection places the policy rate around 3.4% by end-2026. We expect policy to reach around 3.1% by the end of 2026, reflecting continued disinflation and easing labour-market tightness.
- We continue to take a long-term, data-driven view, focused on building resilient portfolios that can navigate both upside and downside risks.
- Staying invested is key. Time in the market rather than timing the market.
If you have any questions or need assistance, please feel free to reach out to our Customer Service team via email or WhatsApp.
Please note that past performance is not indicative of future results. Investments are subject to market risks, including the potential loss of principal. The information contained herein is for general information and reference purposes only. Information on this website is not and should not be construed as an offer to sell, or a solicitation of an offer to buy any security, investment product or service, nor a distribution of information for any such purpose. It is not intended to form the basis of any investment decision. Investors should not make any investment decision based solely on the information and services provided herein. Before making any investment decision, investors browsing this website should consider his/her own circumstances including but not limited to his/her financial situation, investment experience and investment objectives, and should understand the nature, terms and risks of the relevant investment funds in detail. Unless otherwise specified, all historical figures shown are for illustration purposes only and not necessarily indicative of future performance. All forms of investment carry risks, including fluctuation of prices of fund units and the possibility of loss of the capital invested. Please ensure that you fully understand the risks and costs involved by reading the Risk Disclosure Statement. Some of the fund(s) mentioned above have not been authorised by the Securities and Futures Commission (“SFC”) in Hong Kong. Please seek professional advice from an independent financial consultant where necessary. Syfe Hong Kong Limited (“Syfe”) is a Hong Kong Corporation licensed by the SFC (CE No. BRQ741) under Types 1 (Dealing in Securities), 4 (Advising on Securities), and 9 (Asset Management) for conducting relevant investment activities.
