StashAway will be lowering it rates to 1.4%. Will Endowus be lowering its rates anytime soon?

I think SA Simple projected yields for the underlying funds have been lower for some time, but it has been clarified that SA was making up the difference by bridging it. I only heard they officially lowered the projection yields to 1.4%. You should confirm that with them as this is just something somebody shared with me and the emails that have been floating around. = (Update: pls see more details above in Amanda's post!)

Endowus Cash Smart, from the day of launch had a few distinguishing features, 1) we had 2 solutions to meet different needs, risk and returns expectations of clients - we listened to our customers, 2) we have introduced unique and differentiated products and features and structures including our 100% trailer fee rebate which now Stashaway and some others now follow - we are encouraged by this, 3) we have always been fully transparent putting in place system with our partners so that we can update on a regular basis the projected yields, 4) we have been updating our monthly yields and have already revised our yields when necessary to always reflect the latest numbers based on the weekly updates we get, 5) finally we are the only ones that provide a range of returns - showing a conservative range of expected projected yield, instead of a fixed number to let clients know that the expected yield is not guaranteed and also can be adjusted or move around in the future.

We hope that these efforts will continue to be embraced by others as the industry best practices. Our current ranges for expected projected yields are 1.7 to 2.0% for Cash Smart ENHANCED and 0.9 to1.1% for Cash Smart CORE.​​​

Hi there,

Just jumping in as I would like to clarify an inaccurate observation made by Samuel.

We have in fact been meeting our projected rate of 1.9% by providing an additional rebate that I'll touch on below.

Over the past few months, to stimulate the economy, global central banks have been lowering interest rates. The rates in developed economies such as the US, Japan and EU are currently at zero or negative to stimulate the economy. Although this is great news for people looking to borrow money, the lower interest rates also make it more difficult to earn rates on cash. You may have noticed the savings account interest rate with your bank and fixed deposits rates falling sometime ago.

However, instead of lowering the rate a few months ago when the funds weren’t performing as well, we added a rebate to bridge the difference between the projected rate and the actual rate. This is part of our promise of complete transparency to our clients: We haven’t, and we won’t, communicate a projected rate that we don’t expect to deliver. We also don’t offer a range that you might expect, because we simply aim to give you what we tell you.

The rebate was paid out quarterly to bring the rate achieved on your StashAway Simple to 1.9%. As always, we're happy to help you calculate and reconcile the 1.9% for your StashAway Simple portfolio. You can simply write in to us at [email protected] or WhatsApp us at +65 9467 2416.

This is a write-up by The Business Times on our projected rate being revised to 1.4%: https://www.businesstimes.com.sg/garage/stashaw...​​​