Your Recommended Portfolio Optimisation for Syfe Income+ : July 2024

Dear Client,

We recommend the following portfolio optimization for your Income+ portfolios, aligned with PIMCO’s asset allocation guidance.

Why We Carry Out the Portfolio Optimisation 

This portfolio optimisation exercise aims to keep the distribution yield for Income+ Preserve within our target range of 4.0% to 4.5%. By rebalancing the portfolio, we seek to ensure that the portfolio consistently meets our yield target while adapting to changing market conditions.

Similarly, the Income+ Enhance portfolio has also been optimised to bolster its resilience and improve the diversification of income sources.

Impact on Your Portfolios    

After the recommended portfolio changes, you will see these improvements for your portfolios:

  • For Income+ Preserve, the yield to maturity will improve from 6.4% to 6.6%, and the distribution yield will increase from 3.9% p.a. to 4.4% p.a, back to our target rangel of 4.0 – 4.5% p.a. 
  • For Income+ Enhance, the yield to maturity will remain at 7.2%, with the distribution yield staying the same at 5.6% p.a., within our target range of 5.5% to 6.0% p.a. 

Income+ Preserve: New Target Allocation

The percentage allocation to the underlying funds in your portfolio may vary from the target allocation due to price changes.

The new target allocation for Income+ Preserve aims to improve the distribution yield and further diversify income sources.

Key changes include: 

  • Reduce allocations to the GIS Global Bond Fund as we seek to diversify the portfolio’s core bond exposure and rebalance prudently to higher-yielding strategies.
  • Increase allocations to the GIS Income Fund as we appreciate its tactical flexibility amid a continued volatile environment and take advantage of the attractive valuations of securitised credits. 
  • Increase allocations to the GIS Global Investment Grade Credit Fund as the fund provides an attractive source of duration alongside a resilient credit profile.
  • Add the GIS Asia High Yield Bond Fund to boost yield potential and complement duration exposure.

Income+ Enhance: New Target Allocation

The percentage allocation to the underlying funds in your portfolio may vary from the target allocation due to price changes.

The new target allocation for Income+ Enhance aims to improve the portfolio’s diversification and resilience.

Key changes include: 

  • Reduce allocations to the GIS Diversified Income Fund as we seek to diversify into higher-quality corporate and securitised credit exposures. 
  • Increase allocation to the GIS Income Fund and GIS Global Investment Grade Credit Fund to enhance the portfolio’s diversification.

Syfe Income+ portfolios are non-discretionary and require your consent for recommended portfolio changes. We highly encourage you to opt in for portfolio optimisation. This ensures that your portfolios are periodically fine-tuned to reflect updated target allocations, thereby optimising your returns. You can choose not to opt in, we will maintain your current allocation. To opt in, navigate to any of your existing Income+ portfolios, and follow the instructions given in the banner just below the portfolio’s performance chart. Once opted in, the optimisation process starts automatically. You only need to do this once even if you have multiple Income+ portfolios. Learn more.

If you have already opted in for portfolio optimisation, no action is required.

This portfolio optimisation is covered in your fees and you will not incur any additional charges. See the updated portfolio holdings by logging in to your Syfe app. If you have any questions, please reach out to us at support.sg@syfe.com or call us at +65 3138 1215.

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