Digital wealth manager Syfe makes push into Hong Kong

SINGAPORE-BASED robo adviser Syfe is making a push into Hong Kong, offering its advisory and wealth management services in the territory in its first foray outside Singapore.

Tailoring its current offerings to fit the local market, the platform, which launched on Tuesday (May 17), will offer its suite of investment portfolios to investors in Hong Kong, Syfe said on Tuesday. Syfe had secured its licence from the Securities and Futures Commission in Hong Kong under Types 1, 4 and 9, for dealing and advising in securities, and asset management.

From Jun 1, Syfe will offer 9 investment portfolios in Hong Kong. Four core portfolios – built around maximising risk-adjusted returns – and 1 thematic portfolio on disruptive technology will apply direct indexing of its US equity component, instead of the US exchange-traded funds, which would significantly reduce costs. 

Syfe’s founder and chief executive Dhruv Arora believes that its focus on passive investments will be able to endure headwinds in the Hong Kong market, which has seen family offices and financial institutions leaving the city to set up in Singapore.

It could be an opportunity for people to look towards long-term wealth, he told The Business Times: “These are not things we expect people to put money into and take out after 2 to 3 months.”

“The market (in Hong Kong and China) is significantly cheaper than what it was 6 months ago, and that makes it a good entry point (for investors),” he added.

Like Singapore, Hong Kong is a financially savvy economy, he said, but has some of the same issues that tend to be found here: “There is a high savings rate, but lack of access to quality wealth management solutions.”

Meanwhile, its products in Singapore will continue to be enhanced. Syfe earlier this year decreased the rates for its Cash+ portfolio, a cash management product, to build a more stable product and has seen positive returns monthly, said Arora.

“During wartime markets, people need stability,” he noted.

Founded in 2019, Syfe is backed by venture capital firms such as Peter Thiel-founded Valar Ventures, which led its US$30 million Series B round in July 2021. This brings its total funding to US$52.4 million. Syfe has around 190 staff members across its geographies in total, and aims to accelerate hiring in Hong Kong to support growth. 

Over the next 6 to 12 months, Arora aims to bring Syfe’s brokerage platform, Syfe Trade, to Hong Kong, adding that the startup is currently working with the relevant parties.

And with its foot now in 2 Asian markets, Syfe is exploring entry into a third country within the next 3 months, Arora said.