What do you think of the re-optimisation of the Syfe Cash+ portfolio?

Hello there! Thanks for sharing your thoughts. From our conversations with clients, we recognise that many seek a more defensive cash management product. They want stable yield with very minimal drawdown and virtually no volatility, even if the return potential is slightly lower.

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The re-optimised Cash+ portfolio has a shorter duration and less exposure to credit risk since the majority of its holdings are in high quality short-term money market and debt instruments.

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With rate hikes on the horizon this year, volatility is expected to remain elevated, especially for money market products. As such, the re-optimisation positions Cash+ more defensively. Given its shorter duration, this allows for the underlying bonds to be reinvested at a higher interest rate when rates rise. This not only provides a higher expected return but could also offset the negative impact of short-term price movements.

Not great... seems like most short term bond funds are down at this juncture anyways. Not sure how it will change with the interest rate adjustments and hikes coming