Income+ portfolios use PIMCO’s actively managed fixed income funds as their core building blocks. While Syfe continues to advocate passive ETF strategies for most growth-oriented portfolios, active management offers key advantages for income-focused investors, providing flexibility, tax efficiency, and currency stability.

Active management

Income+ portfolios leverage PIMCO’s actively managed funds to invest across a wide range of fixed income securities. This allows them to capture attractive income opportunities while maintaining a relatively low risk profile. In comparison, most ETFs are passively managed, offering limited flexibility to adapt to changing market conditions or tailor holdings to investors’ income needs.

Tax efficiency

Since dividends constitute the major portion of returns for income investors, any tax implications can significantly impact overall returns. The funds used in Income+ portfolios are Irish-domiciled, making them more efficient with respect to dividend withholding taxes.

For Singapore-based investors, this structure can provide up to 30% savings compared to US-domiciled ETFs enhancing overall net returns from income distributions.

SGD hedging

Income+ portfolios invest in SGD-hedged share classes to reduce foreign exchange volatility. This helps ensure stable, consistent monthly dividend payouts, which is essential for clients seeking predictable income. In contrast, unhedged USD-denominated ETFs may lead to fluctuating SGD payouts due to currency movements.

For more details, please refer to the Income+ portfolios' Investment Strategy.