The est. max loss and current upside caps could be reset for 2 reasons: (1) as initiated by Syfe (subject to your consent) and (2) when existing options within the constituent ETFs expire and subsequently get rolled over to new options. These re-optimisation features make the downside-protected portfolio an evergreen alternate portfolio for you to invest in. 

1. Syfe initiated 

Syfe offers periodic re-optimisation usually on a semi-annual basis. This allows the portfolio to lock in the gains while continuing to capture further upside potential. This is achieved by replacing the existing constituent ETFs with new ETFs offering a higher return cap and loss protection closer to prevailing market conditions. Essentially, as the portfolio’s gains move closer to the current upside cap, we re-optimise the portfolio to these new ETFs which effectively helps to reduce loss potential and revise the current upside cap upwards to capture further growth. 

2. Roll of options within the ETFs

In addition, options embedded within the constituent ETFs will also roll over on an annual or bi-annual basis upon expiry. The newly rolled-over options will continue to protect against losses as the downside (put) option restrikes to the prevailing ETFs’ prices while the upside (call) option provides a new higher upside cap. This helps to keep the est. max loss unchanged (before fees) and revise the upside cap higher.

Refer to our Investment Strategy to learn more.