Smart Baskets

• Can you provide an example of how an AU Smart Basket will be executed?

  An AU Smart Basket may have 3 constituents as follows:

  1. Constituent A - 40% (current market price A$100)
  2. Constituent B - 35% (current market price A$50)
  3. Constituent C - 25% (current market price A$10)

  If an order for the AU Smart Basket at an order value of A$1,000 is placed, the Smart Basket will allocate A$400 to Constituent A, A$350 to Constituent B, and A$250 to Constituent C. 

  For each constituent trade within AU Smart Baskets, the trades are placed with a 2% upward buffer. Accordingly, market to limit trades will be placed at the following prices:

  1. Constituent A - A$102
  2. Constituent B - A$51
  3. Constituent C - A$10.2

  The quantity traded will be rounded down to the nearest whole number because fractional trading is not supported. As a result, 3 units of Constituent A, 6 units of Constituent B, and 24 units of Constituent C will be purchased. The total brokerage cost for executing this Smart Basket will be A$7.47, which is a 50% discount compared to buying the constituents individually. 

  The maximum possible value of the order of A$1,007.47 will be withheld from the client's cash balance when the order is placed. Once the trades are executed based on the execution price, the remaining cash balance will be released to the customer.

  The trade will only be active on the day of placement, and it will be automatically canceled afterward. This means that some trades may be filled while others may not, for example, if the price of the constituent remains above the 2% price buffer. You will be updated on the status of the trades in the history page of the Menu section in the app.

  The above is illustrated as follows:

  Constituent	Allocation	Constituent Unit price (A$)	Order Value based on allocation (A$)	Buffer Adjusted price (A$)	Quantity	Amount Allocated (A$)	Brokerage Cost (A$)
  A	45%	100	450	102	4	408	2.49
  B	35%	50	350	51	6	306	2.49
  C	20%	10	200	10.2	19	193.8	2.49
  Total			1000			907.8	7.47

  After the execution of the Smart Basket, the total amount charged including fees will be A$915.27, and the unutilised amount will be released back to the customer.

  The maximum price charged is A$915.27, assuming all the constituents have increased by 2%. However, in reality, it is quite unlikely that the market prices of the constituents will differ from those at the time of placing the Smart Basket order. Therefore, the actual cost of the order is likely to be lower than A$915.27.

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• Can you provide an example of how a US Smart Basket will be executed?

  A US Smart Basket may comprise 5 constituents as follows:

  1. Constituent A - 35% 
  2. Constituent B - 30% 
  3. Constituent C - 15% 
  4. Constituent D - 10% 
  5. Constituent E - 10%

  If an order for the US Smart Basket at a total order value of $1,000 is placed, the constituent trades within the Smart Basket (assuming fully filled) will result in the client purchasing exactly $350 worth of Constituent A, $300 worth of Constituent B, $150 worth of Constituent C, and $100 worth of each of Constituents D and E, though the number of units purchased may vary due to price fluctuations. This is because Syfe supports fractional trading for US constituents. The total brokerage cost would be $3.7 (i.e. 50% discount compared to the cost of buying the constituents individually). In total, you will pay $1,003.7 for the purchase of this US Smart Basket.

  The above is illustrated as follows:

  Constituent	Target Allocation	Order Value based on allocation (US$)	Value Purchased (US$)	Brokerage Cost (US$)
  A	35%	350	350	0.74
  B	30%	300	300	0.74
  C	15%	150	150	0.74
  D	10%	100	100	0.74
  E	10%	100	100	0.74
  Total		1000	1000	3.7

  Total amount charged with Fees: US$1,003.7

  Q: Can you provide an example of how an AU Smart Basket will be executed?

  A: An AU Smart Basket may have 3 constituents as follows:

  1. Constituent A - 40% (current market price A$100)
  2. Constituent B - 35% (current market price A$50)
  3. Constituent C - 25% (current market price A$10)

  If an order for the AU Smart Basket at an order value of A$1,000 is placed, the Smart Basket will allocate A$400 to Constituent A, A$350 to Constituent B, and A$250 to Constituent C. 

  For each constituent trade within AU Smart Baskets, the trades are placed with a 2% upward buffer. Accordingly, market to limit trades will be placed at the following prices:

  1. Constituent A - A$102
  2. Constituent B - A$51
  3. Constituent C - A$10.2

  The quantity traded will be rounded down to the nearest whole number because fractional trading is not supported. As a result, 3 units of Constituent A, 6 units of Constituent B, and 24 units of Constituent C will be purchased. The total brokerage cost for executing this Smart Basket will be A$7.47, which is a 50% discount compared to buying the constituents individually. 

  The maximum possible value of the order of A$1,007.47 will be withheld from the client's cash balance when the order is placed. Once the trades are executed based on the execution price, the remaining cash balance will be released to the customer.

  The trade will only be active on the day of placement, and it will be automatically canceled afterward. This means that some trades may be filled while others may not, for example, if the price of the constituent remains above the 2% price buffer. You will be updated on the status of the trades in the history page of the Menu section in the app.

  The above is illustrated as follows:

  Constituent	Allocation	Constituent Unit price (A$)	Order Value based on allocation (A$)	Buffer Adjusted price (A$)	Quantity	Amount Allocated (A$)	Brokerage Cost (A$)
  A	45%	100	450	102	4	408	2.49
  B	35%	50	350	51	6	306	2.49
  C	20%	10	200	10.2	19	193.8	2.49
  Total			1000			907.8	7.47

  After the execution of the Smart Basket, the total amount charged including fees will be A$915.27, and the unutilised amount will be released back to the customer.

  The maximum price charged is A$915.27, assuming all the constituents have increased by 2%. However, in reality, it is quite unlikely that the market prices of the constituents will differ from those at the time of placing the Smart Basket order. Therefore, the actual cost of the order is likely to be lower than A$915.27.

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• How are the Smart Baskets executed?

  You may place Smart Basket orders at any time, but they will only be executed during market hours. Trades placed through Smart Baskets will remain active only on the day of placement, after which they will be canceled. 

  You can check the status of the individual orders in the Smart Basket order in the history page of the Menu section in the app.

  The following execution rules apply for US Smart Baskets and AU Smart Baskets:

  1. For US Smart Baskets, the allocation of your funds between individual constituents will not vary. All trades are likely to be fully executed, but the execution prices and quantities of units purchased may vary due to market movements. In the unlikely event that any trades are unfilled, they will be canceled at the end of the trading day, and the unused funds will be returned to you.
  2. For AU Smart Baskets, the allocation of your funds between individual constituents may vary depending on the eventual trade execution prices. This is because fractional trading is not supported. Trades may not be filled at the same time. Unfilled trades will be canceled at the end of the trading day, and the unused funds will be returned to you. 

  To protect customers from excessive price fluctuations, a 2% buffer is added to the current market prices to ensure execution of the market orders for Australian equities. If the constituent’s price exceeds the 2% buffer, the trade will not be executed. 

  Example:

  An AU Smart Basket comprises Company Y as a constituent. Company Y is currently trading at a market price of A$100 per share. When you place your order through that Smart Basket, a 2% buffer of A$2 is added to the current market price, bringing the maximum order price to A$102 per share. If the price of Company Y's shares stays below A$102 per share, your order will be executed at the best available price market price below A$102.

  However, if the price of Company Y's shares rises to A$105 per share, your order will not be immediately filled. Instead, it will remain active throughout the day to increase the likelihood of execution at the best possible price. If the price of Company Y's shares drops back down to below A$102 per share later in the day, your order may be executed at that price.

  If the price of Company Y's shares remains above A$102 per share, your order will not be executed at all, and the trade will be canceled at the end of the trading day.

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• Who are Syfe’s wealth professionals?

  Syfe’s wealth professionals are qualified investment professionals who specialise in market analysis and curation of investment strategies. For each Smart Basket, Syfe’s wealth professionals are involved in the selection of the constituents as well as their respective allocation. They also periodically review the Smart Baskets to ensure that they remain optimised.

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• How does Syfe’s team of wealth professionals determine or create the basket for investment?

  At Syfe, we use a data-driven approach that considers factors such as diversification, cost effectiveness, and long-term wealth generation. While fundamental analysis is not the sole determinant, it does play a role in the selection of individual stocks within the Smart Basket. Our wealth professionals construct the Smart Baskets to be diversified across various asset classes, time horizons, risk levels, and geographies, with the objective of providing investors with a well-rounded investment solution.

  For example, the Conservative Growth Smart Basket has an objective of conservative growth and income generation, and it has a primary allocation to bonds with some allocation to equities and gold for added diversification. Investors with shorter time horizons who are looking for stable returns with low volatility and drawdowns may find this Smart Basket attractive.

  Smart Baskets do not consider and are not tailored to your individual goals and circumstances, and are not to be regarded as personal advice. You are advised to read and understand the descriptions and compositions of the various Smart Baskets so as to have a good understanding of the underlying investments and to ascertain if they are suitable for you. You may also wish to discuss the appropriateness of any particular Smart Basket for your personal financial circumstances with your own independent financial adviser.

  Finally, while our team of wealth professionals take into account all relevant information when deciding (a) which constituents should be included in a given Smart Basket, (b) each constituent’s respective allocation within a Smart Baskets, and (c) each Smart Basket’s rating in terms of characteristics such as investment time horizon and suitable risk appetite, this is done based on information that is current at the time of the analysis and that is available to Syfe. All investment involves risks, and you should place Smart Basket orders only if such risks are acceptable to you.

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• What happens if my individual orders are canceled during the execution of the order?

  The order may get canceled by the exchange for various reasons. If the order is canceled, it will not be placed again and only the orders that went through in the Smart Basket will be executed. For AU orders, there may be specific reasons for cancellation which can be found in the Syfe Help Center. 

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• What happens after the orders in a Smart Basket are filled?

  Once the orders are filled, the purchased securities will be listed individually on your portfolio page. If you wish to sell, you will need to sell the securities individually.

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• Can I customise the underlying securities in a Smart Basket?

  No, Smart Baskets are pre-selected by Syfe's wealth professionals and the allocations cannot be customised. If you wish to customise the trades, you may do so by placing the trades individually.

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• What is the minimum order value for Smart Baskets?

  US Smart Baskets have a minimum order value of US$100, and can be purchased at increments of US$10 thereafter.

  AU Smart Baskets have a minimum order value of A$1,000, and can be purchased at increments of A$100 thereafter. The higher minimums for the AU Smart Baskets are required to ensure the optimal allocations of stocks/ ETFs within the Smart Baskes are achieved given that, unlike US trades, fractional share trading is not supported for AU trades.

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• How many securities are in each Smart Basket?

  Generally, 3-8 securities are included in each Smart Basket. Please note that Smart Baskets are individual trade orders which are placed together, and as a result some of the trade orders may not be filled due to market conditions.

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• What are the filters in the Smart Baskets?

  You can filter the Smart Basket according to your preferred investment time horizon (0-3 yrs, 4-5 yrs, 6-10 yrs, 10+ yrs), your risk appetite (High, Medium, Low), and your desired primary geographical exposure (US & AU). You can also check the box if you are interested in getting passive income or growth on these Smart Baskets.

   

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• What are Smart Baskets?

  Smart Baskets are a new feature that simplifies investing by allowing users to buy diversified baskets of securities or ETFs with a single order, rather than having to execute multiple trades individually. These pre-packaged orders are designed based on various investment attributes of the constituent securities, such as geographic and industry exposure, historical dividend yield, and historical capital appreciation.

  It's important to note that each Smart Basket consists of several individual orders for ease of execution and should not be considered a managed discretionary account or a managed investment scheme.

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