Looks like a good way to get REIT diversification if you are investing smaller sums.
I saw that in order to get 0.4% fees the minimum is 100K, so effectively $400 a year. Maybe that makes sense for a global equity portfolio but there is no way I am paying that for such a passive/bond-like REIT product.
In terms of benchmark, I wouldn't compare against STI ETF.
First, Singapore is a very inefficient market with high fees. Secondly, anybody with a reasonable sum of money should be diversifying geographically and as such, investing outside of SGX. All of a sudden, the benchmark becomes global ETFs that charge 0.1-0.5% and not the STI ETF.
I don't see the value-add that Syfe is providing. In fact, given how correlated REITs are with bonds, I would be annoyed any time they shift towards bonds. The risk profile stays similar while the returns drop. I hope they publish some backtesting results with and without "ARI" (that go further back than 2017...).
The value in this is perhaps the re-balancing and the reduction in transaction costs which is worth maybe 0.2% annually - not 0.4-0.6%.
-- If you want a really hands-off approach, 0.4% is ok, but I would really want proof that this ARI thing is going to help rather than hurt.
As you said, 0.4% is still ok. Thats the main point.
I would like to add that having 1 consolidated managed acc is also good for beneficiaries especially if they are not financially well versed. If your beneficiaries are financially literate, you are lucky. Imagine they are not, whats going to happen when you pass away? They will have to deal with ibkr, fsmone etc or even worse individual stocks/reits. What if theres a rights issue after you pass away?
For me there is this ease/convenience which such robos/managed accs bring. At <=0.4% i think it is still ok though i hope syfe can introduce 1 more tier for maybe 500k or 1mil
I did a quick comparison of Syfe vs Lion S-REIT ETF
Lion S-REIT ETF
0.50% Management Fee
0.25% Brokerage Fee*
0.04% Clearing and access fee
0.15% Custody / Trustee fee
0.10% Rebalancing fee
???? other charges (prospectus shows a lot of other things but aren't really clear)
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