New Endowus Core Flagship Portfolio Very Aggressive

I am invested in Endowus Core Flagship portfolio under "very agressive" which was a 100% equities allocation. Recently, I was prompted to do a rebalancing for the said portfolio above into their new underlying holdings for their updated Core Flagship portfolio. I took a look at their updated Core Flagship portfolio, and saw that the new underlying holdings no longer consisted of 100% equities. The new underlying holdings consisted of 85% equities and 15% "Cash and Equivalents". Can someone advise on why this approach is taken for the "very agressive" Core Flagship portfolio? 15% seems like quite a fairly large portion to be kept out of equities, which I had assumed was the best instrument to maximise returns over a long investment period. I also do not understand the holdings under the "Cash and Collaterals". Can someone shed some light on it please? Thank you.

Endowus

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Terence

16 Jun 2023

Hi Jacen, usually these Funds have < 1% holdings in 'Cash or Equivalents' for re-balancing purposes. The list of 'Holdings' looks correct but not the 15% total (in bold green).

I think it is 'overkill' to have 7 different funds to capture Global equities market. Personally, I use Fund Smart by setting up 2 different goals with 0.3% Access Fees (as compared to their Core/Flagship with higher fees up to 0.6% unless you have $5m). The only feature lost in Fund Smart is the 're-balancing' feature, for that you can manually do that once a year with some simple math.

iShares Developed World Index Fund (IE): 80%
Amundi Index MSCI Emerging Markets Fund: 20%

So if you regularly invest $1000, allocate $800 to iShare Developed and $200 to Amundi EM Fund. If you believe in Dimensional, you can also do the same with the 2 similar Dimensional Funds: