Advertisement
Anonymous
Considering that Syfe uses a risk-based rebalancing approach where they allocate a higher percentage of the portfolio towards bonds during periods of risk– does it mean that if I invest more during this period, I would not be actually buying cheaper REITs that would later accrue in value?
1
Discussion (1)
Learn how to style your text
Eliezer
16 Mar 2020
Content & Community Lead at Syfe
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Products
4.6
935 Reviews
Syfe
ETFs, Equities, Bonds, REITs, Gold
INSTRUMENTS
0.4% to 0.65%
ANNUAL MANAGEMENT FEE
None
MINIMUM INVESTMENT
N/A
EXPECTED ANNUAL RETURN
Web and Mobile App
PLATFORMS
4.7
1295 Reviews
4.7
657 Reviews
Related Posts
Advertisement
Hello there! You’re right that Syfe uses a risk-based rebalancing approach to manage our portfolios. For the REIT+ portfolio, that would mean adjusting the REITs and bonds allocation such that overall portfolio risk is kept within a 15% Downside Risk band.
Given how volatile the REIT market has been over the past weeks, we have adjusted the allocation to be around 50.5% REITs and 49.5% bonds. This rebalancing defends against rising market volatility, essentially providing yield with capital preservation. You can view more details here: https://www.syfe.com/reit-plus-portfolio
By investing regularly into the REIT+ portfolio during this period, you are indeed purchasing more REIT assets at a lower price.
But given how volatile the market is, nobody can predict whether REIT prices will trend lower or rebound. By also increasing your exposure to bonds, Syfe helps to limit excessive portfolio fluctuations, thereby giving you the confidence to hold on to your investments, even if the market were to tumble further.
If you would like to find out more, feel free to consult our investment advisors. You can schedule a call here: https://www.syfe.com/financial-advisors