Shengshi Chiam, CFA - Seedly
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Shengshi Chiam, CFA

Personal Finance Enthusiast. I believe that wealth is a game that we should optimise. Join us on telegram https://t.me/endowus

Shengshi Chiam, CFA

Personal Finance Lead at Endowus

About

Personal Finance Enthusiast. I believe that wealth is a game that we should optimise. Join us on telegram https://t.me/endowus

Credentials

Personal Finance Lead at Endowus

Shengshi Chiam, CFA

Personal Finance Lead at Endowus

  • Answers (137)
  • Questions (3)
  • Reviews (2)

Endowus

Robo-Advisors

Investments

ETF

Hi, We dont mean FX hedging for equities, but for bonds. It means that investors do not have to incur any FX transaction costs, as well as cross the FX bid-ask spread when they invest through us. As you can imagine, making an expensive FX transaction when you buy/sell a foreign currency denominated fund is somewhat like a sales/withdrawal charge respectively. If you are able to transact in a cost efficient manner for FX through a low cost discount brokerage, and are happy to hold on that position over longer periods of time, then the impact to returns will be marginally poorer. Else buying into low cost sgd funds is great! To clarify Sam was referring more about to the PIMCO bond funds, he didnt elaborate fully during the presentation. So to be fully clear, for the Dimensional Funds you have FX exposure , just that you dont have to do FX transaction/ bid-ask spread. Hope this helps!
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Endowus

Stocks Discussion

ETF

Investments

Robo-Advisors

Hi Anon, Its ok, I do read through all questions tagged! :) There are individuals who do well stock picking and timing the market, but we think it is difficult to do it consistently, as it takes a lot of time, emotional management, and knowledge to do it well to have a chance. I think having a 7% returns based on a balanced, diversified, low cost portfolio held consistently is something that indivdual investors can get if they do DCA well, and over the long term returns. Hope that answers!
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Endowus

Hi Anon, Answering directly, we will invest the full amount for you, but you may not want to do it. I will request you to drop me an email at [email protected] if you are unsure if that is the best course, and talk you through your thought process, to be honest. It is a huge sum, and I would like to understand more about your personal circumstances, current investments before making any suggestions. Just answering more generically, lump sum investing (put all at work at once), on average gives higher average returns, and also wider range of investment returns, while gradual investments (dollar cost averaging) may have lower risk in terms of range of returns, it has lower average returns. Hope this helps!
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Investments

StashAway

Endowus

MoneyOwl

Smartly

Hi Anon, We sent out a letter to all our investors, just reposting this for everyone's reference if interested: https://bit.ly/3bvDokg Key summary will beyond the usual licensing comments: 1. All assets are held in your legal name. Operationally, we have gotten UOB kayhian to allow you to hold on to your existing investments at the same cost . You will not be forced to liquidate your investments even if Endowus ceases operations. 2. You will not be able to buy new funds or rebalance though, since this is part of Endowus value added services, Having worked here for 4 months, I think the way we look at costs, especially marketing costs, is more SME style than startup style. Because we are funded internally by the founders (I have subscribed to this round of internal funding as well so I will be a shareholder), we are literally spending our own money and are committed to keep the business sustainable. We structure the holding structure very carefully and safely as if its our own money, and we manage costs carefully as well. Hope this answers!
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Endowus

Investments

Stocks Discussion

Hi Anon, No worries, I frequent here a lot, so I wont miss your post! For equities exposures, we use SGD denominated funds rather than SGD hedged funds. Effectively the FX exposure is still in the foreign currency. So what happens is that the fund managers will take your monies in SGD, buy USD with it, and transact with Vanguard to purchase the unit trust in USD. The rates which Lionglobal is doing it at is at institutional FX rate with Vanguard. The good thing is that buyers and sellers of the SGD funds will can transact at the same price, without go through the bid-ask spread for currency. As you might know, we are doing our best to lower the total costs by rebating trailer fees so that the costs of unit trusts are lower - these funds need scale to lower costs as well, so currently it is hard for them to compete with ETFs has a larger AUM. For CPF, we are doing the best with whatever is available.
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Endowus

Robo-Advisors

Investments

ETF

Bid ask spread is an implied cost that is incurred by the buyer and seller for the ETF, not the underlying securities. The more iliquid the ETF, the wider the spread, the higher the cost to the buyer and seller. Let's say you have a bottle of wine. You think it is $14, but someone is only willing to pay $8. The both of you grudingly agree to transact at $12 eventually. The wider the spread, the greater the cost to both of you since you have to compromise more.
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Endowus

Robo-Advisors

Investments

ETF

Hi Woo, I am using the retail solution, even though I could have "advised myself" and gotten a tailored solution. Actually the bespoke funds are also largely chosen based on the same philosophy, Low cost, diversified, and run by reputable fund managers. Just that they may be denominated in a foreign currency, and the high networth clients may have a desire to adjust certain allocations based on their other investments and preferences, which is something we will discuss with them. The allocation is definitely not returns driven, or else we would have made it available to all.
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Endowus

CPF

Investments

Robo-Advisors

Hi Zi Kai, Yes, we will purchase the unit trust based on current pricing. For CPF monies, it will be T+2 days after you confirm because of some agent bank constraints. We dont believe in timing the market, so anytime would be a good time to invest, as long as you have a long term horizon and a commitment to remain invested.
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Endowus

Bonds

Hi Dirl, We choose to use PIMCO funds because they allow us to be diversified across credit, geographies and be invested in government bonds. The range of dimensional bond funds in SGD hedged is limited. We do not compare performance because we priortise exposure over returns, even though we do compare funds of the same exposure for long term performance when it has a long enough track record.
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Endowus

REITs

CPF IS

DBS

Stocks Discussion

HI! I am assuming you are referring to investing directly through a brokerage. The CPFIS SGX investable stocks can be found here. This is subjected to the 35% CPF investible in stock, compared to 100% for unit trusts, which is what Endowus offers. This is the first disadvantage, not being able to invest a bigger amount of your CPF. Another thing is the dividends portion- Reits give high dividend, the unit trusts Endowus uses are all accumulating share class (no dividends, pure capital gain). For CPF investing it really doesnt make sense to receive dividends 1. you cannot use the cash flow from dividends anyway 2. you will incur agent bank fees for reinvestment of dividends if you do it through a broker, and brokerage charges.
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