I’ve been investing into stashaway and Syfe but what if they decide to optimise the portfolio?

Hi there,

I'm glad to hear you've been sticking to your dollar-cost averaging strategy!

We seek to optimise your portfolio for every economic conditions and to take advantage of valuation gaps wherever they are evident.

If we do re-optimise, that would mean we are either taking advantage of valuation gaps or looking to give you the highest risk adjusted return for a particular economic regime we're in.

It does not necessarily mean we'll be selling at a low price or buying in at a high price. For example, back in December 2017, we did a reopimtisation as we saw that Gold was undervalued. We then increased allocation to Gold across our portfolios. At that time, Gold was trading at 1,200+. Now, gold is trading at 1,700.

If we do exit a particular asset class, it means we are allocating and investing the funds to another asset class we expect will do better going forward.

Hello! It's great that you're sticking to your investment plan and regularly DCA-ing into the market.

Allow me to share more about Syfe's portfolio optimisation strategy. We adopt a risk management approach where we optimise your asset allocation when we detect that your portfolio risk level has exceeded your chosen downside risk level. By reducing your exposure to higher-risk assets, we cushion your portfolio against losses. This gives a lot of investors the assurance to stay invested even though the market is so volatile.

You can read about how our recent optimisation allowed our portfolio to outperform both our benchmark and an un-optimised Syfe portfolio here: https://www.syfe.com/magazine/market-whiplash-h...

Regarding concerns that this might seem like we are selling your securities at a "low price", there's then the question of time frame to consider. For example, if a client had invested with Syfe in early October 2019 when the S&P 500 hit a “low” of around 2,887 points, our recent rebalancing would have sold the assets at above 3,100 points. Yes, it is lower than the recent “high” of 3,386 points in mid-February, but still significantly higher than the 2,887 points it was purchased at.

Our goal is to deliver better risk-adjusted returns over the long term. If you have more questions, our dedicated investment advisors can better explain our methodology. You can schedule a call / meeting here: https://www.syfe.com/financial-advisors