Is it a good retirement strategy to invest using robo advisors eg. Syfe/ Stashaway? I am about 30 years from retirement and wondering if roboadvisors will still be around.?

What happens if the roboadvisors were to close suddenly? I understand our funds are protected (diff account as their operating accounts) but does it mean our portfolio with them will be sold when it closes even if it is during a market down turn?

StashAway Syfe

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Syfe

14 Oct 2020

Hi there! Please let me share more about how Syfe manages client funds.

We are licensed by the Monetary Authority of Singapore (MAS), and we hold a Capital Markets Services (CMS) License for retail fund management. As a CMS license holder, we have met all the requirements and standards set by MAS to prevent a bankruptcy event from happening. This includes meeting the minimum capital requirement, as well as audits and compliance to ensure that Syfe has sufficient daily cash flow to meet all operational needs.

Funds in your Syfe account are held in a Trust Account in DBS Bank while your investments are kept in a Custodian Account through Saxo Capital Markets. These are held separately from Syfe’s assets.

In the unlikely scenario of our closure, we will work together with Saxo Capital Markets under the supervision of MAS to ensure the orderly transfer of assets to another licensed fund manager, or the return of all assets and funds to our customers. Customers will be able to choose their preferred means.

We are committed to going the distance with you. We recently closed a SG$25.2 million (US$18.6 million) Series A funding round which will accelerate our journey toward reshaping the future of investing and saving in Asia.

I hope this gives you a peace of mind regarding investing with Syfe for your retirement needs!

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Yang Teng

08 Oct 2020

That's a valid and real concern! Just recently this year Smartly has to cease services, and investors were forced to liquidate their investments regardless of the market condition.

Some platforms do not comingle your assets but allow you to have an individual custodian account. In the event where the company has to shut down, your investments will still be safe with the brokerage and you can continue investing in them, though it might be a little more expensive for smaller-size investments. These platforms include AutoWealth and Endowus.

If you have a sufficiently large capital and willing to dedicate some time to invest, you should consider DIY to save costs and have some peace of mind.

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