Syfe has launched Income+ Max, a multi-asset income portfolio developed with J.P. Morgan Asset Management and two other ETF managers.
The strategy uses options on equities and gold to target annual payouts of 8% to 10%, although distributions are not guaranteed.
The digital wealth platform, which manages over S$20 billion in assets across APAC, aims to address equity concentration and market volatility through diversified income sources.
How Income+ Max generates income
The portfolio generates income from equity dividends, bond coupons and premiums collected by selling call options on equities and gold.
Option premiums generally increase during periods of heightened market volatility, potentially providing additional income.
Income+ Max allocates 55% to equities, focusing on high-quality companies with relatively lower volatility, and 35% to fixed income with short-to-medium duration exposure to limit interest rate sensitivity.
Syfe allocates the remaining 10% to gold to diversify the portfolio when stocks and bonds move in the same direction.
J.P. Morgan Asset Management supports credit and emerging market selection, while REX Advisors and First Trust Advisors also provide ETFs for the portfolio.
Syfe automatically rebalances the portfolio every six months and reinvests distributions by default. Investors with at least S$5,000 invested can opt for monthly cash payouts.
Addressing portfolio concentration
Syfe highlighted the risks of unmanaged portfolio drift, citing an example where a 60/40 equity-bond allocation at the end of 2022 would have shifted to 73/27 by August 2026 without rebalancing.
“Stock dividends are sitting near record lows, and chasing them means piling into the same few names as everyone else,”
said Ritesh Ganeriwal, Managing Director and Group Head of Investment & Advisory at Syfe.
“Gold helps cushion the portfolio when markets turn, and fees are in line with passive index funds,”
he added.
“This collaboration reflects the growing role of active ETFs in investors’ portfolios,”
said Ayaz Ebrahim, CEO of Singapore, South East Asia and India at J.P. Morgan Asset Management.
Income+ Max expands Syfe’s existing income portfolio range alongside Income+ Preserve and Income+ Enhance, which take a more conservative, bond-focused approach.
The launch follows Syfe’s broader product expansion in Singapore, including the introduction of options trading on its brokerage platform.
Featured image credit: Edited by Fintech News Singapore, based on image by smartmalik6384 via Magnific
