Understanding Income

• What are the relevant fees in Income+ portfolios?

  We endeavor to bring to our clients the best-in-class institutional strategies at a fraction of the cost that is typically applicable to access them. As such, to access Income+ portfolios you don’t pay any of the subscription, switch fees or redemption fees that are charged by most other platforms. 

   

  In addition, to further lower the costs, we either access Institutional share class or pass on 100% of the trailer fee rebates received on rebate fund share classes. As such, the net Fund Level Fees (the weighted average of the net unified management fees of the constituent funds after accounting for trailer fee rebates) is only 0.47% for Income+ Pure and 0.56% for Income+ Enhance (as of 30 June 2023), resulting in closer to 50% management fee savings in addition to all the other subscription, switch or redemption fee savings mentioned earlier.

   

  For our investment portfolios, Syfe fees range from 0.35% to 0.65% per year based on the higher of your total assets under management or total invested amount. 

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• Is the distribution from Income+ portfolios taxable?

  For individual Hong Kong tax residents, the distributions you receive from the Income+ portfolios are tax-free. For investors residing outside of Hong Kong or with unique tax circumstances, please consult your tax expert to understand any potential tax implications specific to your situation.

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• Is there any lock-in period, subscription fees or withdrawal fees to invest in Income+??

  Syfe Income+ offers the advantage of having no lock-in period, subscription fees, and withdrawal fees. This means that investors can access their funds without any restrictions or penalties. They have the flexibility to enter or exit the portfolio based on their financial goals and requirements, without incurring any additional charges. This feature provides investors with ease and transparency in managing their investments within the Syfe Income+ portfolio.

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• How frequently does Syfe reassess and rebalance the Income+ portfolios based on prevailing risks and market conditions?

  The constituent funds selected within the Income+ portfolios are actively managed by the respective fund managers. In addition to this, Syfe takes an active approach to managing the allocations across these funds and adding or removing constituent funds, within the Income+ portfolios, in order to adapt to evolving market risks and opportunities. Syfe’s investment team periodically assesses composition and macro cycles and initiates rebalancing usually on a semi-annual. A more frequent reassessment may occur if there are significant market movements or macroeconomic developments.

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• What are the advantages of investing in Income+ Pure & Enhance?

  Diversification: The portfolio is diversified across different fixed income assets, such as government bonds, corporate bonds, and convertible bonds. This diversification helps reduce the impact of any single bond or asset class on the overall portfolio's performance.

   

  Active Management: The portfolio is actively managed, allowing it to adapt to changing market conditions. This active approach aims to optimize income generation and manage risk effectively.

   

  Monthly Payouts: Both Income+ Pure and Income+ Enhance options offer monthly dividend distributions. Investors can choose to receive these payouts directly to their bank accounts or reinvest them, depending on their immediate income needs.

   

  Institutional-like Access at Lower Cost: Syfe aims to provide investors with access to best-in-class institutional strategies at a fraction of the cost typically associated with such access. By passing on any trailer fee rebates received from fund managers, Syfe helps investors achieve significant cost savings.

   

  Tax Efficiency: The portfolio is constructed with funds domiciled in Hong Kong and Luxembourg, which provides greater tax efficiency in terms of dividend withholding taxes compared to US-domiciled ETFs. This strategy can potentially save Hong Kong-based investors up to 30% in dividend withholding taxes.

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• What is the difference between Income+ Pure vs Enhance?

  Income+ Pure, with a low-medium risk score, employs a strategy that focuses predominantly on investment grade quality bonds which typically involves investing in high-quality bonds such as US Treasuries and investment-grade corporate bonds.

   

  While Income+ Enhance, with a medium-high risk score, employs a strategy that focuses on credit to generate higher returns which typically involves investing in higher-yielding, such as high-yield corporate bonds, in addition to equity and alternate income assets.

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• How does Syfe Income+ work?

  Syfe Income+ is a discretionary managed portfolio service designed to meet the diverse income needs of investors. It consists of two investment portfolios: Income+ Pure and Income+ Enhance.

   

  Income+ Pure: Tailored for investors seeking regular monthly income with lower risk.

   

  Income+ Enhance: Designed for investors looking for higher monthly income and potential long-term capital appreciation.

   

  The portfolios are actively managed and diversified across various fixed-income assets, including government bonds, corporate bonds, and convertible bonds. This diversification helps reduce the impact of any single bond or asset class on the overall portfolio's performance.

   

  Monthly dividend distributions are a key feature of both Income+ options. The minimum funding requirement for any Syfe HK portfolio to verify a bank account is HKD 10,000. For more details, you can check here: https://help.hk.syfe.com/hc/en-hk/articles/4515889219609-Is-there-a-minimum-investment-amount-or-lock-in-period

   

  Clients can choose to receive monthly payouts directly to their bank accounts or reinvest them, depending on their immediate income needs.

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