Chuin Ting Weber - Seedly
Chuin Ting Weber

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Chuin Ting Weber

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Chuin Ting Weber

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MoneyOwl

Investments

Robo-Advisors

Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Updated on 07 Jun 2019
Hi Adrian, Thank you for your question! Allow me to repost one of my previous answers to a similar question, though I will also address the issue of algos and AI. I will try to describe the value-add that MoneyOwl brings and let you decide how it compares with the other companies that have a robo platform. First, MoneyOwl is not really a pure roboadvisor but a bionic financial advisor - meaning we combine human wisdom and tech - we have an investment robo but we also have a substantial team of well trained (fully salaried) client advisers. We believe that good advice helps to bring about a successful investing experience and that such advice must involve a human element. Advice includes asset allocation, risk profiling, fund selection, monitoring, rebalancing and very importantly risk coaching to help investors stay invested through turbulent market times. There are many reports that show that investors lose out on market return because they panic and sell too early. An adviser adds value when he or she can help investors understand how markets work and stay invested over the long term to capture market return, rather than time the market. Because it involves connecting the head and the heart, we need technology to do the quantitative parts but we also need human wisdom and empathy. Hence sometimes I hesitate actually to say we are a roboadvisor! The quantitative parts done by the robo for advisory I mentioned above do not have decisions or recommendations based on predictive or simulated statistical models or AI. For example, we do not say that people are of a certain income/age profile do better with a certain portfolio and we would not look for spurious correlations (eg whether people who live in Jurong are more risk averse). Rather, all recommendations in the algos are based on sound financial planning principles applied to each individual. Specifically, in matching you to your portfolio we consider your ability, willingness and need to take risk, in combination. Sometimes these can contradict each other (eg if you have a large capacity to take risk but very low willingess) and this is when we suggest you speak with our adviser - possible because of our bionic model - for a better understanding, and it is up to you if you wish to do so. Where we do use some statistics is in projecting your portfolio returns, in particular the range of returns you can expect 75% of the time (worse or better scenario) around a median (or base case scenario), but we do this calculation without any Monte Carlo simulation. Rather, we use a lognormal or also known as a theoretically correct model. (On models in investment management, please see fourth point below.) Second, in terms of scope of advice, MoneyOwl is not only an investment (robo)advisor, but a comprehensive financial adviser. The investment robo module is our third - after insurance and wills - and soon we will launch comprehensive planning where we integrate both CPF planning and investments for retirement planning, plus introduce retirement withdrawal concepts. Third, we are confident to be this bionic, comprehensive financial advisor because of our DNA and parentage. MoneyOwl is not a pure start-up in that we are a JV between two home-grown Singapore corporates, NTUC Enterprise and Providend, who have been serving Singaporeans for decades. From the NTUC side, we inherit our inclination to serve the ordinary folk through fit-for-purpose solutions, hence our investing quantum starts from $100 lump sum/ $50 monthly. From the Providend side of our parentage, we inherit deep expertise and experience in best-in-class, conflict-free and holistic financial advice. Fourth, we believe that our investment philosophy and expression of it through the way we construct and manage portfolios - when coupled with advice - give clients a very good chance of a successful investing experience. Because we are at our core advisors, more than fund managers, (even though we have a full fledged fund management licence), we do not define successful investing as being about maximising return or even maximising risk-adjusted return. Rather, we want to advise and structure investments for clients in such a way as to give you the best odds of meeting your goals. From a combination of evidence we have examined and experience including across the GFC, we know that the keys to successful investing lie in 4 areas: being globally diversified; aiming for market-based return, rather than trying to beat the market through "active management"; keeping costs low; and staying invested over the long term. In particular, on active management, I would like to highlight that neither we nor the Dimensional funds we use utilize any statistical models to try to read such events as to determine macro/economic regime or to predict market movement based on indicators, and thereafter shift asset allocations tactically to try to time entries into and exits out of certain asset classes. Such active management has had a poor track record especially in longer tone periods. You can read more about this at https://advice.moneyowl.com.sg/the-right-way-to-invest/ I hope that this gives you a good picture of how MoneyOwl thinks about its journey with Singaporeans in putting their money to work towards greater financial security. Thank you again for your question!

SeedlyTV EP04

Investments

Robo-Advisors

Smartly

Autowealth

Stashaway

Endowus

MoneyOwl

Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Updated on 07 Jun 2019
HI Zhirong, I didn't have a chance to answer your question at the live question session yesterday night, partly because it gave me pause and actually a little moved -- that you would ask us robo/bionic advisers, coming to market a relatively new business model, about our ideal customer; when surely it is our job to ask you, what you wish to see in your advisor and how we can journey with you in a way that really adds value to your life. For MoneyOwl, our purpose is really getting advice right for the ordinary man in the street so that every family can have a plan for sufficiency in retirement, adequant protection against the things that can destroy this plan, from a holistic viewpoint, and enough buffers for peace of mind and give the stretch to that hard-earned dollar. For some customers, this would mean investing in a way that has little guesswork. For others, it could mean just sorting out or saving through CPF without having to buy any products or even invest with us. Yet for others who need it, just budgeting advice and saving into instruments like the Singapore Savings Bond. Perhaps our perspective is a little different because we are not just doing investing, but comprehensive advice.

Investments

Robo-Advisors

MoneyOwl

Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Updated on 07 Jun 2019
Hi Zhirong, thanks for your question. Allow me to take it in three parts - about costs which are directly relevant to Irish-domiciled ETFs vs MoneyOwl's offerings; about MoneyOwl's core proposition and advantage; and finally a word on Dimensional funds vs indexed funds/ETFs. Fund domicile & costs Indeed, fund domicile has an impact on implicit costs especially dividend withholding tax. To re-cap a little, for the sake of other Seedly readers, Irish-domiciled Dimensional unit trusts used by MoneyOwl are tax-efficient compared to US-listed ETFs used by roboadvisors that use ETFs, because with Irish-domiciled Dimensional funds there is no dividend withholding tax for Singapore investors, whereas for US ETFs there is a 30% withholding tax. This can add up to quite a bit of implicit costs. (See our article https://advice.moneyowl.com.sg/why-unit-trusts-and-not-etf/ ) But as you rightly point out, there are also Irish-domiciled ETFs. Yes, these are just as tax-efficient as our Irish-domiciled Dimensional unit trusts, in that there is no withholding tax. However, Irish-domiciled ETFs have higher bid-ask spreads - another implicit cost - and much lower liquidity than US ETFs. The bid-ask spread of the Irish version of the global stock index ETF is more than 0.09% wider than the US ETF, and for emerging market stocks, the difference is more than 0.13%. Probably for this reason and the related lower liquidity, roboadvisors that use ETFs have chosen to use US ETFs. There were a few other issues with ETFs highlighted in the article that remain irrespective of domicile in Ireland or US. This includes: (1) Difficulty in deploying modest amounts every month as a regular savings plan - something we encourage as financial planners who are focussed on the ordinary man in the street - into ETFs, while being able to manage transaction costs well and be fully invested without having to accept fractionalising of shares. On transaction costs, you would need to do your sums -- SGBudgetBabe pointed out that for IB, you have to pay a USD120 annual fee for accounts less than USD100k. ( https://www.sgbudgetbabe.com/2019/05/my-review-on-moneyowl-investment.html?fbclid=IwAR0kT9UA71TUdcfbcNhAIkV605Gr-q10VBLB7qIlr0wODX3RKThSY0ZweA ) As for fractional shares, MoneyOwl is not comfortable with fractional shares of ETFs as legal ownership is unclear, if the main record of the end client's holding is at the advisor's premises in a ledger rather than with the custodian. On this we acknowledge there are different viewpoints among different firms. (2) Global bond ETFs are not hedged back to SGD, unlike the Dimensional fixed income fund in MoneyOwl. From a risk profile point of view, it is important to hedge out the currency risk of foreign currency -- foreign currencies fluctuate much more than bond prices, otherwise the bond portion of the portfolio will be volatile and that negates purpose of having fixed income in the portfolio, which is to reduce the volatility. In other words, without the hedge, you are actually taking a very different risk than what you might have intended with that fixed income/bonds part of the portfolio. What MoneyOwl aims to offer Having said all of the above, if finding the lowest possible cost is the only concern, and you are mainly an equities investor, DIY investing rather than investing through MoneyOwl or any advisor will be most cost effective. Investing with MoneyOwl can't really be compared to DIY investing which does not come with advice. We are not a brokerage or a marketplace for funds. MoneyOwl keeps investing costs low, but our value is not in aiming to be the lowest cost, but to give you the best chance of a successful financial plan of which investing is a part. MoneyOwl’s services are for the man on the street who needs and wants to receive advisory services. DIY investors who have the knowledge and ability to perform all the aspects of the advisory value chain on their own as described below should really continue to invest directly themselves as that is the cheapest way to invest. Our core is really in advice and may I suggest some pointers below for consideration: (1) What constitutes advice or advisory services in investment? This includes: - Risk profiling – helping to match you to the right portfolio based on the combination of your ability, willingness and need to take risk - Portfolio construction with the right strategic asset allocation (return/risk) - Regular review of strategic asset allocation, in case of major strategic shifts that affect our fundamental investing assumption - Fund/instrument selection - Monitoring performance of underlying funds - Execution of buy and sell - Rebalancing at regular intervals to asset allocation - Risk coaching of investor to stay invested during turbulent markets Not everyone is able or wants to do this on his own. Investors who can, should do these things on their own. For those who prefer advice, MoneyOwl will do all of these for our clients through a bionic model (tech + human advisers) for 0.65% p.a. (promotional rate now 0.50% p.a.) (2) The value of advice, or advisor alpha: There are many reports that show that investors lose out on market return because they panic and sell too early when markets go down. An adviser adds value when he or she can help investors understand how markets work and risk-coach investors to stay invested over the long term to capture market return, rather than time the market. Just as importantly is educating the clients prior to things happening - and in MoneyOwl we have a full advice.moneyowl.com.sg site where we share articles and views (not just on investing but on financial planning in general) and on 25 May we are having an Investment Symposium ( please see https://www.eventbrite.sg/e/moneyowl-investment-symposium-registration-60702740531), plus our good-sized team of advisers is available to have discussions with you. One Morningstar study showed that the difference between a market return and an investor's return can be as much as 2+% per year over 10 years, which adds up to a lot. (3) Bionic advice - human and technology. MoneyOwl has a team of human advisers who go beyond customer service, to provide actual financial advice, to supplement our robo platform. Successful investing involves connecting the head and the heart, to understand the trade-offs among need, ability and willingness to take risk (when these are in conflict) and when markets are turbulent. We need technology to do the quantitative parts and provide 24/7 accessibility for exploration, but we also need human wisdom and empathy. It's like a store where you can come in and browse without anyone tailing you, but we are there when you want to talk to us. (4) Comprehensive in advice - Investing should not be an end in itself, but part of your overall financial plan. MoneyOwl is not only an investment (robo)advisor, but a comprehensive financial adviser. The investment robo module is our third - after insurance and wills - and soon we will launch comprehensive planning where we integrate both CPF planning and investments for retirement planning, plus introduce retirement withdrawal concepts. An sensible accumulation plan really should integrate national schemes for retirement (which are now compulsory) and not just be about investments and shortfalls, and should be supplemented by how to invest in retirement withdrawal years as well. This is very hard for DIY investors to do on their own. (5) Best-in-class advice that understands Singaporeans - MoneyOwl benefits from its parentage as one of our parents - Providend - is a best-in-class advisor with deep experience in comprehensive financial planning and retirement planning, including CPF planning. Just as Providend has been serving the affluent market well, so now will MoneyOwl, its close associate, do for the mass market. At the same time, we inherit from our other parent, our majority shareholder NTUC Enterprise, a strong inclination to serve the ordinary working family in Singapore, thus combining a unique blend of expertise and mission and deep understanding of Singaporeans, underpinned by common values of Doing Right. Dimensional vs indexed funds From a financial planning standpoint, both Dimensional funds offered by MoneyOwl and globally diversified passive indexed funds (be they ETFs or unit trusts) are market-based funds that fit our investment philosophy -- no market timing, focus on long-term asset allocation (not short-term tactical shifts). That said, I think it is important to appreciate and understand the unique value proposition of Dimensional funds, which are based on Nobel prize-winning research about long-term dimensions of higher return; and you might feel that this is a good addition to your whole market-based portfolio even if you do DIY investing. (You can read more about Dimensional here https://advice.moneyowl.com.sg/the-right-building-blocks/ ) Dimensional funds are not available to retail investors for direct investment - this is the stance that Dimensional takes around the world - because it knows that the odds of a successful investment journey are so much higher when the right advisor is there alongside the investor. So it comes back to this - MoneyOwl is about advice and we are confident of our delivery of advisor alpha to you.

SeedlyTV EP04

MoneyOwl

Robo-Advisors

Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Updated on 07 Jun 2019
Hi Anonymous, You can view a portfolio projection without having to sign up. Give it a try at www.moneyowl.com.sg Happy browsing - you don't have to sign up until you want to and if you need any advice/ want to understand more, drop us an email. You can also check out advice.moneyowl.com.sg/investment to understand more. Chuin Ting

Investments

AMA First Investment

Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Updated on 07 Jun 2019
Hi Anonymous, this is Chuin Ting Weber, CEO & CIO of MoneyOwl. I infer from your question that you are thinking of implementing the strategy of Bridgewater/Ray Dalio's "All Weather Portfolio", namely, the strategy of Risk Parity. To re-cap quickly on Risk Parity: in traditional asset allocation, you allocate according to asset classes, e.g. 50% equities and 50% bonds. In risk parity, conceptually, you allocate according to risk. For example, if you thought that equities were twice as risky than bonds, then one way of doing risk parity would be to allocate much less to equities and much more to bonds. A usual proxy for risk is volatility. But this is probably too simplistic for most funds. For Bridgewater, All Weather was meant to be a systematic, "automatic" way of investing. All Weather allocates to assets that respond differently in four environments (hence "weather"), namely, combinations of rising growth, falling growth, rising inflation, falling inflation. 25% of risk is allocated to asset classes that perform well in each (this is all on Bridgewater's website): - Rising growth: equities, commodities, corporate credit, EM credit - Rising inflation: inflation-linked bonds, commodities, EM credit - Falling growth: nominal bonds, inflation-linked bonds - Falling inflation: equities, nominal bonds The idea is that the returns are not cancelled totally and net returns are more than cash over time. Some roboadvisors, e.g. WealthFront, have introduced risk parity ETFs. There is even one roboadvisor that also uses the term "All Weather". I have the following difficulties with recommending All Weather/ Risk Parity as a main strategy for investors. - What is the motivation behind why we want to have a risk parity portfolio rather than a traditional portfolio? All Weather is a beta strategy. Meaning it moves with the markets. But because of risk parity, in rising markets, it will underperform say, a 60/40; but in falling markets, it will perform less bad. being beta, it does not return positive if the reasons markets fall are risk premiums rising and discount rates rising. (That's why Bridgewater came up with Optimal portfolio with an "alpha" element in 2015, but that has its own issues as well.) It would seem that the objective of risk parity is to achieve higher risk-adjusted returns as a whole over time. As far as investment lingo goes, that seems to be a very decent objective. But from a personal financial planning point of view - can you "consume" risk-adjusted return? I would say no, as what matters is the actual return and whether it can help you retire. And what actually is risk? Risk is often proxied by volatility. If you do not have the capacity or willingness to take the volatility of say, a 80/20 fund, why not then have a more moderate portfolio with less equities? - Following from this point, I do not know what is the expected return of Risk Parity and therefore I do not know whether or not it will meet your need for return, because Risk Parity is not an asset class. Of course there is a return target, but that is just a target by managers. There are many different ways to implement Risk Parity and the ultimate returns you get will be very dependent on the individual manager or investor's active decisions. Even though Bridgewater's system is supposed to be quite automatic, I suspect that most managers (or investors ourselves if we try to implement from scratch) will have to make multiple active calls/decisions to implement, and managers will want to try to read the macro market to "overweight" and "underweight" and choose which EM credit depending on macro environment, and change them around to beat the market. After all, if it does not beat the market, why would investors pay higher fees than say, indexed funds? For those of us in Singapore, just the issue of what you do with the foreign currency exposure - given that many instruments are not avialable locally - will be another decision, because it actually adds foreign currency risks, which you should "pare" out also. - Costs involved in implementation are likely to be very high. If you want to implement from scratch, the number of securities you have to buy will be very large and there will be frictional costs for small portfolios. When you want to rebalance the risks, it is going to be complicated, you have to run through a model and then buy and sell - there will be costs. Of course, you can check out the ETFs, but these costs for active funds will generally be higher than for passive ones - the question is whether it is worth it in terms of net returns. Perhaps we can take a leaf out of the book of institutional investors. I have said that "risk parity" is a strategy and not an asset class. What is an asset class is "hedge funds" in general (or you can say it is a sub-asset class under the asset class called "alternatives"). Bridgewater is such a hedge fund. Institutional investors do allocate to hedge funds, but usually limit exposure, e.g. university endowment funds that have a long investment horizon will go for say, 20% in alternatives, and generally not more than 5% in each fund or strategy. The thing is, hedge fund performance is really dependent on manager skill and included in the portfolio generally because it gives uncorrelated return to traditional asset classes, but there is often a question if the return is not just leveraged beta - and All Weather is indeed beta. For me, it is really a question mark over whether fund managers can perform consistently over the long term to beat the market. Over the past years, for all the trouble that fund managers go to and all the costs, it has been very hard to beat the market especially on a net basis. So if you wish to try it out, maybe you can consider a small percentage of your portfolio in this strategy, but bear in mind the implementation problems mentioned above especially if you do not have a lot to start with. But for your main portfolio, from a financial planning point of view, the portfolio that you invest in to help you accumulate wealth should be based on your (1) need to take risk (what is your required return, e.g. to fund your retirement) (2) ability to take risk and (3) willingness to take risk. For most of us, a globally diversified portfolio comprising of equities and bonds should suffice. Less is more when it comes to investing. Find the correct asset allocation for you such that you can bear short-term volatility without panicking and selling off, search for portfolios that put this asset allocation together using low-cost funds that do not time the market, and capture market-based return by staying invested over the long term. That would probably be the best bet for your investing experience and for your financial goals. All the best! Chuin Ting Weber

SeedlyTV EP04

Investments

MoneyOwl

Stashaway

Autowealth

Robo-Advisors

Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Updated on 15 May 2019
Hi Anonymous, thanks for your question! Firstly allow me to clarify the structure of an investor's relationship with MoneyOwl vs Dimensional and the roboadvisors you mentioned. An investor would invest in Dimensional funds through or with MoneyOwl ; and the parallel is that an investor would invest in ETFs through roboadvisors like Stashaway or Autowealth. So the "equivalent" of Dimensional funds are the ETFs (provided by Vanguard, State Street etc.) and they are the underlying funds with fund managers. Whereas MoneyOwl's "equivalent" in terms of the relationship with an investor is the roboadvisor like Stashaway or Autowealth. The investment philosophy thus has to be considered on different levels as well. On the underlying fund level, Ting So and Yang Teng have described the differences between Dimensional and ETFs (passive indexed funds traded on exchanges). I would say that there is commonality in both Dimensional funds and ETFs used by roboadvisors in being market-based (largely following market, no "active" management in terms of stock picking or tactical asset allocation/ market timing), low-cost and broadly diversified. To digress slightly - but on an important point: there are structural differences between Dimensional funds, being unit trusts, and ETFs, those used being US ETFs, that affect the accessibility, return and risk of the investor that are not directly to do with markets. Broadly speaking, they are as follows: (1) Dimensional funds, being unit trusts, can be invested even with small amounts down to your last dollar. MoneyOwl, being a social enterprise seeking to bring great solutions to the ordinary person, has a low threshold in terms of investment quantum of $100 one-off/ $50 monthly. To do the same with ETFs, you would have to either have larger investment amounts, accept some drag from keeping some spillover in cash, or fractional shares with your record kept at the roboadvisor's level and you may or may not be comfortable with this. (2) ETFs (depending on which ones are used) may have a lower headline Total Expense Ratio (TER) than Dimensional funds, but the situation may be reversed once you consider hidden costs of ETFs especially withholding tax treatment, but also fund bid-ask spread and forex bid-ask spread. Dimensional funds used by MoneyOwl are domiciled in Ireland, are much more tax-efficient than ETFs, and traded on NAV, without bid-ask spread, and are registered in Singapore as SGD funds. (3) For the bond portion, Dimensional funds are fully hedged back to SGD, your base currency, whereas US bond ETFs are not. It is important to hedge bonds back to base currency because the volatility of currency is higher than that of the volatility of bonds. If you do not hedge out the currency, then actually you are taking more risk that you had meant to by incorporating bonds into your portfolio and you are really investing in a different type of portfolio with a different risk profile. Please read this article for more important on differences in structure https://advice.moneyowl.com.sg/why-unit-trusts-and-not-etf/ To return to investment philosophy: just as important to consider, besides the investment philosophy of the underlying funds, is the investment philosophy of the one "with" or "through" which you invest -- MoneyOwl or the roboadvisors. While the underlying instruments are market-based, or passive or passive-plus, do understand whether there is an active overlay expressed in terms of dynamic or tactical asset allocation, based on such views as macroeconomic changes, market forecasts etc., and which you are convinced by. MoneyOwl believes that it is very hard to beat the market consistently over the long run by changing tactical asset allocations, as borne out in the active managers' longstanding underperformance as a group and also the lack of persistency of champions who make it in on year. Instead, MoneyOwl believes in staying invested in globally diversified portfolios over your investment horizon to capture market return, without going in and out. Rebalancing for us is about returning to the weights that present your intended risk/return mix or asset allocation, based on your need to take risk, your ability to take risk and your willingness to take risk, not about changing asset allocation mixes. A full description of our investment philosophy is here https://advice.moneyowl.com.sg/the-right-way-to-invest/ You may also wish to join us at our inaugural Investment Symposium on 25 May 2019! https://www.eventbrite.sg/e/moneyowl-investment-symposium-registration-60702740531 In addition, you may wish to understand how each of the companies you are investing "through" or "with", adds value as there are meaningful differences. After all, you pay an advisory/"wrap"/access fee. There are many models, some are more like robo-macro fund managers (as they shift asset allocations), some are more robo-tools for access. For MoneyOwl, allow me to describe who we are and what we do: 1. Our core is advisory, and bionic (not just robo-) advisory. Bionic advisory means combining tech and human wisdom, and we have a good-sized (human) advisory team of fully-salaried (non-commissioned) advisoers who are available to you not just for client service, but for actual regulated financial advice. Why do we believe that humans are important in investments? This is because money is a very personal thing and can involve not just the head but the heart. There can be complexities in how the need to take risk, ability to take risk and willingness to take risk interact or contradict each other, and human wisdom for risk coaching is needed. Most importantly, risk coaching is important to help investors understand how markets work and to stay invested through turbulent times, to not lose out on return but capture the full market return upon recovery. In fact, Dimensional funds are not available directly to investors worldwide, but they only distribute through advisers, because they believe in the advisor alpha or value-add to a client's investing experience. 2. We are a comprehensive financial advisor, not just an investment (robo-)advisor, though we have an investment platform, which is our third robo after insurance and will-writing. These are all on our website at www.moneyowl.com.sg In the next few months, we will roll out our fourth robo which is the comprehensive planning module that incorporates CPF LIFE into retirement planning as the starting point or bedrock of retirement planning for Singaporeans and PRs. If you check out our content site at advice.moneyowl.com.sg, you will see that our range of articles is not just about investments, but about insurance, estate planning, wills, CPF etc. 3. Finally, MoneyOwl is not a pure start-up, but a joint venture between NTUC Enterprise and Providend. NTUC is a household name that has been around for decades, to serve ordinary working families and help everyone stretch the hard-earned dollar. Providend is the first fee-only, conflict-free independent financial adviser in Singapore, one of the first set up almost two decades ago, known for its best-in-class expertise and ethical advisory practice. As part of a larger corporate group, we also take security seriously, with MoneyOwl being an ISO27001 certified company despite being only about 9 months old. We are thus confident to bring our services to the Singapore mass market, with this unique parentage that brings a combination of mission and experitse, to be with you in your investment and holistic financial planning journey. Hope this helps and thanks for reading!

Investments

MoneyOwl

Endowus

Robo-Advisors

Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Updated on 13 May 2019
Hi Anonymous, the third-party platform fee is totally passed through to iFast who acts as custodian/transfer agent. We have negotiated the fees to be as low as possible. In choosing our partners, besides the costs, we have also looked at a variety of other factors including technology capability, track record and experience in operating with large numbers of retail clients. These capabilities are important given our target market and small investment thresholds of $100 one-time/ $50 monthly, and the need for significant integration that is needed to make the user experience as seamless and operationally error free as possible. In my opinion, it would be remiss of us to look only at headline costs without considering the potential costs or issues to clients related to operational risks. That said, we are constantly on the lookout for suitable partners who are competent and who can add value to our clients and we are not at closed to making adjustments as necessary. Actually, we are not really wanting to have a “price war” which will harm everyone and ultimately investors if business becomes unsustainable. Allow me also to reproduce partly what my colleague Harry Ch’ng, MoneyOwl CFO & SVP, Investment, has said in response to another question on costs: We may not be the lowest-cost adviser - we do not aim to be so, and in fact the lowest cost option is DIY investing. Rather we aim to keep costs low enough to give investors a good return on their investments, while adding value through advice. Our advice is firstly, bionic, i.e., not just digital/robo but also human, and we have a team of advisers who can help clients especially through risk coaching to stay invested when times are turbulent. Our advice is also not just on investment, but comprehensive - we already have insurance and will-writing and soon we will integrate CPF planning in our comprehensive planning offering. Finally, we are confident to bring our services to our clients not just because we believe we have the right investment philosophy and process to deliver results to our clients, we also have the right people and resources behind the technology — as a JV between NTUC Enterprise and Providend, we bring a unique combination of mission for the ordinary man in the street and long-standing expertise in financial advisory, to journey with you into the long term. Thank you again for your question and your suggestion — we will definitely take heed.

SeedlyTV EP04

Investments

Robo-Advisors

MoneyOwl

Endowus

Unit Trust

Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Answered on 08 May 2019
Hi Anonymous, the funds MoneyOwl currently uses in our portfoios are not Shariah-compliant. This is an area in which we would need time to do some research on the options available for globally diversified, low-cost, market-based funds that are Shariah-compliant and yet have a long enough track record such that we can be confident of how such a composition delivers and if it can fulfil the required return. In the same vein, we are also in the midst of tying up with estate planners on will-writing for Muslims -- as you might know, we are a comprehensive financial adviser. Apart from investments, if you are Singaporean we would also soon be rolling out CPF planning (CPF LIFE is compulsory now) and once that's launched, we would be able to help all our clients plan for retirement with that as a base. Thank you!

SeedlyTV EP04

Robo-Advisors

Autowealth

Smartly

Stashaway

MoneyOwl

Endowus

Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Answered on 06 May 2019
Hi Anonymous, this is Chuin Ting from MoneyOwl. The uniqueness of MoneyOwl's service is a reflection of who we are behind what you see -- in many senses, we are actually not an investment robo (even though we have a robo - 3 robos, in fact) and not a pure start-up (we aren't VC or entrepreneur funded). Rather, MoneyOwl is anchored in comprehensive and bionic advice that understands ordinary Singaporeans' needs -- made possible by the combination of expertise and mission that we have inherited from our two corporate parents. On being comprehensive, we already have our insurance and will writing services (which include insurance and roboadvisors ready) and right now we are working on a 4th comprehensive module that will encompass CPF LIFE as the bedrock of retirement planning, to be rolled out in the next few months. Currently CPF is often seen mainly as a source of funding for investments, but CPF LIFE is so much more than that. You need to see your investing plan as part of your overall financial plan, to see the trade-offs, layers and buffers in a way that integrates CPF, as well as protection and other aspects. Among our team are experts that have built CPF calculators, been on CPF Advisory Panel, and know CPF, both policy and operations. Our one parent, Providend, is one of the earliest comprehensive financial advisors in Singapore. Just as importantly, being bionic we have the human element -- not just customer service persons, but a substantial team of advisors who can do the whole gambit of financial planning with you, including but not limited to investments, to integrate everything together when your dollar is limited. And stretching the dollar for the ordinary Singaporean is what our majority parent, the NTUC social enterprises group, has been doing for decades. Looking forward to our session tomorrow!

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Chuin Ting Weber
Chuin Ting Weber
Level 5. Genius
Updated on 30 Apr 2019
Hi Anonymous, this is Chuin Ting, CEO/CIO of MoneyOwl. Thank you for your question. I will try to describe the value-add that MoneyOwl brings and let you decide how it compares with the other companies mentioned here. First, MoneyOwl is not really a pure roboadvisor but a bionic financial advisor - meaning we combine human wisdom and tech - we have an investment robo but we also have a substantial team of well trained (fully salaried) client advisers. We believe that good advice helps to bring about a successful investing experience and that such advice must involve a human element. Advice includes asset allocation, risk profiling, fund selection, monitoring, rebalancing and very importantly risk coaching to help investors stay invested through turbulent market times. There are many reports that show that investors lose out on market return because they panic and sell too early. An adviser adds value when he or she can help investors understand how markets work and stay invested over the long term to capture market return, rather than time the market. Because it involves connecting the head and the heart, we need technology to do the quantitative parts but we also need human wisdom and empathy. Hence sometimes I hesitate actually to say we are a roboadvisor! Second, in terms of scope of advice, MoneyOwl is not only an investment (robo)advisor, but a comprehensive financial adviser. The investment robo module is our third - after insurance and wills - and soon we will launch comprehensive planning where we integrate both CPF planning and investments for retirement planning, plus introduce retirement withdrawal concepts. Third, we are confident to be this bionic, comprehensive financial advisor because of our DNA and parentage. MoneyOwl is not a pure start-up in that we are a JV between two home-grown Singapore corporates, NTUC Enterprise and Providend, who have been serving Singaporeans for decades. From the NTUC side, we inherit our inclination to serve the ordinary folk through fit-for-purpose solutions, hence our investing quantum starts from $100 lump sum/ $50 monthly. From the Providend side of our parentage, we inherit deep expertise and experience in best-in-class, conflict-free and holistic financial advice. Fourth, we believe that our investment philosophy and expression of it through the way we construct and manage portfolios - when coupled with advice - give clients a very good chance of a successful investing experience. Because we are at our core advisors, more than fund managers, (even though we have a full fledged fund management licence), we do not define successful investing as being about maximising return or even maximising risk-adjusted return. Rather, we want to advise and structure investments for clients in such a way as to give you the best odds of meeting your goals. From a combination of evidence we have examined and experience including across the GFC, we know that the keys to successful investing lie in 4 areas: being globally diversified; aiming for market-based return, rather than trying to beat the market through "active management" (either by adjusting asset allocations tactically in response to reading of economic conditions, forecasts or events); keeping costs low; and staying invested over the long term. I hope that this gives you a good picture of how MoneyOwl thinks about its journey with Singaporeans in putting their money to work towards greater financial security. Thank you again for your question!
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