In today’s volatile market, securing your investments while still aiming for growth can feel like an impossible balancing act. But it doesn’t have to be. Introducing the Syfe Downside Protected Portfolio S&P 500 (the Protected Portfolio) , Singapore’s first managed portfolio designed to let you tap into the long-term growth potential of the S&P 500 while safeguarding your capital against significant losses.
What Makes the Protected Portfolio Unique?
Unlike traditional asset classes, the Protected Portfolio is built using a series of innovative ETFs that leverage option strategies to protect against large losses while allowing you to capture upside potential.
Here are some benefits special to the Protected Portfolio:
- Loss protection: Built-in protection limits your losses to approximately the “Estimated max loss (Est. max loss)” level. Rest easy knowing your investments are shielded from major market downturns.
- Expertly managed for long-term growth while locking in profits: Our investment team conducts rigorous research and continuously monitors the portfolio. As markets move higher, we also periodically re-optimises the Protected Portfolio to realise gains and raise the Current upside cap. This exclusive feature helps you capture long-term market growth while preserving profits over time. Learn more about Syfe’s re-optimisation here.
- Enhanced asset diversification: The Protected Portfolio experiences lower volatility and reduced correlation with both equities and bonds, showing resilience even amidst market turmoil. This makes it a valuable diversifier for your investment portfolio.
- Full flexibility: There are no minimum investments or lock-in periods, and you can withdraw your funds at any time. This means you’re always in control and can adjust your portfolio whenever needed.
Should you consider the Protected Portfolio?
The portfolio is perfect for:
- Risk-averse investors seeking long-term growth: If you’re cautious about risk and uneasy with seeing your portfolio in the red but still want to grow your wealth over time, this portfolio is an excellent solution. In particular, its unique re-optimisation feature locks in gains and provides continuous upside potential as the S&P 500 rises, while built-in protection limits your losses during market downturns.
- Investors waiting on the sidelines or looking to deploy excess cash: If you have been waiting for better market timing or if you are holding excess cash, this portfolio allows you to enter the equity markets with greater confidence. You can start investing more in the market without worrying about precise timing or market movements.
- US equity investors concerned about a market pullback: If you’re holding US equities and worried about market volatility, but want to reduce your equity risk without exiting the market completely, consider switching to the Protected Portfolio. With no minimum investment or lock-in period, you have the flexibility to adjust your strategy as market conditions change.
Why Invest in the Protected Portfolio now?
Investors face a dilemma: stay invested to combat inflation or withdraw amid rising market volatility. Recession fears, high S&P 500 valuations, the US election, and Federal Reserve actions all signal potentially higher market fluctuations ahead.
Syfe’s Protected Portfolio offers a solution: balance growth with protection.
- In a bear market, your losses are limited to about the Est Max Loss level. During the 2020 market collapse, while the S&P 500 plunged by 34%, this portfolio would have limited your loss to just 3.8%.
- In a bull market, you can participate in the market upside: As the S&P 500 rises, Syfe regularly re-optimises the portfolio, increasing your upside cap to ensure you continue to benefit from market growth.
Syfe’s Protected Portfolio allows you to invest with confidence, knowing your downside risk is managed. Learn more about the Protected Portfolio today!
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Disclaimer: Estimated max loss and current upside cap figures will vary depending on the time you invest in the portfolio. The estimated max loss is not guaranteed, and the portfolio may sustain a loss greater than the indicated figure, or its performance may lag S&P 500, for a period of time due to market events. There is no guarantee that the portfolio will be successful in providing the sought-after protection in capping the losses or in achieving its investment objective.
This portfolio is provided on a non-discretionary basis. Unlike in a discretionary portfolio, we will only change the portfolio constituents and their allocation after obtaining your consent.
This portfolio comprises listed specified investment products and may not be suitable for everyone. Investment involves risks, including the risk of losing part of your invested amount. Refer to our Investment Strategy to learn more about the portfolio and key risks.
Information in this communication is provided for general information only. Any references to past performance and future indications are not, and should not be taken as, a reliable indicator of future results. The information is current at the time of release. Syfe makes no representation and assumes no liability as to the accuracy or completeness of the content of this communication.
