Asked on 20 Aug 2020
I was reading up more about these as well, its quite interesting:
A money market fund is a kind of mutual fund that invests only in highly liquid near-term instruments such as cash, cash equivalent securities, and high credit rating debt-based securities with a short-term, maturity—less than 13 months, such as U.S. Treasuries. As a result, these funds offer high liquidity with a very low level of risk.
My question to Sam and EndowUs would be actually why would I not want to make the investment into LionGlobal SGD Enhanced Liquidity instead on my own..
21 Aug 2020
Hi Kenneth, for LionGlobal SGD Enhanced Liquidity Fund Class I, there is a minimum initial investment of $1,000,000 and subsequent minimum holding of 1,000,000 units. (Refer page 83: https://lgi.dzhintl.com/doc/uploads/documents/index.php?type=PPHS&fid=UMNWS&lang=EN). Due to practicality reasons, most investors would not be able to dedicate so much into an investment.
26 Aug 2020
Yang Teng gave us one good reason. But bottom line is that as individual investors we often get screwed by the system. We get access to only costly Retail funds, that have high ongoing annual fees, but get charged even more fees in form of upfront sales charges, custody fees or transaction fees, etc. etc. We have given individual access to institutional share class, we have negotiated the biggest trailer fees and instead of keeping them like iFast FSM, Dollardex, POEMS or other distributors(that's how they make so much money from "zero" fees!! haha = these are commissions kicked back by the fund managers to them but it actually comes from you - the investors - and the higher fund level fees you pay. So it's actually worse because it's hidden and not transparent. I always laugh when people say but Fundsupermart or Dollardex is zero fees - as they make so much money on trailer fees), we actually 100% rebate them all back to the customers and don't keep a single cent. We only charge a transparent all-in advice fee. It works out to about 33~67% cheaper than using a DIY platform and even cheaper compared to banks or any other distributor.
Hi David, thanks for looking at our CashSmart product. Our projected yields for Cash Smart Core is 0.9 to 1.1%, and Cash Smart Enhanced is 1.7% to 2.0%. Stashaway Simple I was told just revised theirs down to 1.4%. This is all normal. Our numbers are constantly updated to reflect the latest projected yields. Just as banks adjust their deposit rates down or up depending on the interest rate cycle, our cash management solution, Cash Smart has projected yields that fluctuate over time based on market conditions. We have transparently provided the latest projected yields on our website here, and our FAQ section, which also has our monthly numbers updated at least once or twice a month depending on movements in projected yields. We also constantly track the projected yields on a weekly basis and try to update them as often as we can to be transparent by working with our partners and we will keep updating them transparently if there are any changes.
When you invest in Endowus enhanced cash smart, you are effectively investing 50% in the LionGlobal ...
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