We are excited to introduce Yield+, built on short-duration bond funds. It provides a new home for your “soon money” – capital you don’t need to spend in the next one to two years – and complements Syfe’s cash-income continuum that takes care of passive income needs in all stages of your life.
Why Yield+? Every dollar has a job
Every dollar in your portfolio has a job. Some is “now” money, for immediate needs and wants. “Later” money is what you are saving for other goals such as buying a house and retirement. In between sits “soon” money which, left idle, could quickly lose its appeal.
HKD time deposits at the major banks currently pay ~2.4% p.a.,² on the condition that you lock it up for three months. Alternatively, investors may turn to money market funds or fixed income to improve their income. But this often involves taking on more interest rate (or “duration”) risk, at times bringing a level of volatility that short-term investors are not prepared for.
Yield+ is built to bridge that gap. By holding short-duration bonds from high-quality companies as well as governments, it is projected to generate 4.71% yield a year on just one year of duration. The extra return comes from what the strategy invests in and the quality of the managers that select these bonds, underpinned by an architecture designed by Syfe to strike the balance between risk and reward.
Inside Yield+
Yield+ holds three actively managed short-duration bond funds, each in a Hong Kong dollar share class.
- Amundi Funds US Short Term Bond Fund
- Taikang Kaitai Overseas Short Tenor Bond Fund
- Aberdeen Short Dated Enhanced Income Fund
The underlying bond funds have average credit ratings ranging from BBB- to A+. Taken together, the portfolio’s holdings are investment grade on average, with an average duration of about one year.
Syfe selects the funds and their weights, and monitors the portfolio regularly. We use institutional share classes where available, which investors buying these funds directly generally cannot access, and pass back 100% of any rebate we receive from a fund manager. Both compress what it costs you to hold this strategy.
How it earns. Like all fixed income, returns come from two sources:
- Carry — the interest the bonds pay, accruing daily whether prices rise or fall. At portfolio level this yields 4.71% p.a., reflecting the spreads that short-duration credit offers over government bonds.
- Price movement — bond prices move inversely to rates, which are shaped by factors such as monetary policy and macroeconomic events.
The risk. To generate that yield, the strategy takes on two main risks.
- Interest rate risk. With a short duration, the portfolio is less sensitive to rate rises, and its income may offset the resulting losses over a short period.
- Credit risk. All underlying funds are investment grade. We have deliberately spread it evenly across three managers rather than concentrating with one, so no single credit process skews the outcome.
Because this strategy invests in bonds, its net asset value fluctuates with interest rates and credit spreads. Yield+ has no lock-in and no minimum holding period.
Managing risk, compressing costs
Compressing cost. The use of institutional share classes, wherever they are available, lowers the fund-level fees, and any rebate we receive from a fund manager is 100% passed back to you, lifting your net return.
Managing risk. The portfolio has a short duration at launch, so a rise in interest rates would have a relatively limited impact on its capital value, and the income it earns may help offset the loss. If rates fall, rising bond prices could lift the overall return.
Summary: Make your cash work harder
Yield+ is new, but the funds behind it are not. The underlying funds – at the portfolio’s allocations – returned 4.37% over the past year on a backtested basis.¹
Reasonably priced, accessible and simply structured, Yield+ is the ideal home for your “soon” money — expected to be earning more than a fixed term deposit without asking you to lock it away. Make your cash work harder, starting today.
If you have any questions or need assistance, please feel free to reach out to our team.
Here’s to your investing journey,
The Syfe Team
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 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 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. Copyright © Syfe Hong Kong Limited. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from SYFE. It is delivered on an “as is” basis without warranty.
All portfolio figures as of 30 September 2026. Projected yields are not guaranteed.
¹ Backtested data using data from fund managers. Before Syfe fee.
² Three-month Hong Kong dollar time deposit rates offered by the three note-issuing banks, mid-August 2026. Six-month rates at the major banks ranged between 2.20% and 2.40% over the same period.
