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Endowus

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About Endowus

Endowus is a sophisticated, digital-first independent financial advisor with a focus on advancing the human experience of money. The partners set up Endowus to institutional-quality financial products at the lowest cost possible to individual investors in order to help them secure their financial future.

The investment office is led by Sam Rhee, previously CEO and Chief Investment Officer at Morgan Stanley Investment Management.

Method Of Investing For Endowus

Endowus's proprietary institutional process enables every client to have a globally diversified core investment portfolio that is:

  • Personalised
  • Holistic
  • Multi-asset class

The company utilises funds from global fund managers, such as PIMCO and Dimensional, with real, long-term proven track records at a fraction of what the industry average costs.

Minimum Investment And Fees For Endowus

The current minimum amount for investment is $10,000.

Endowus also charges an all-in flat fee of 0.25% to 0.60%.

Don't forget to leave you feedback on Endowus here!

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Dexter Tiah
Dexter Tiah, Founder at Whatcard.sg
Level 3. Wonderkid
Answered 5d ago
If u think its a bull market, then buy it all and hold instead of DCA. Endowus gets you the institutional share class of mutual funds from asset managers, which is a different product from etf (but exposure could be the same)

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Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 8. Wizard
Updated 3w ago
To answer your first question, yes your dividends are re-invested back into the portfolio. It will go back into your account and it will be whon in the transaction statement monthly. In fact, I think most robo advisors witholding tax will all apply. If you transfer that amount into your Robo-advisor account (it is basically their bank account) the total amount will be managed by them (usually they will keep a small % as cash) but almost 95% or more will be invested based on your risk preference and appetite. Hope this helps!

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Chuin Ting Weber
Chuin Ting Weber,
Top Contributor

Top Contributor (May)

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.

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A robo adviser is alway removing human emotions and helping you to diversify in a low-cost way. I don't see the point of diversifying if your capital or monthly amount is small. You should probably lump into one for easy checks. (Do NOT check daily, investment should be long term, check once or twice per year... easier said than done thouhg) Stick to one. Find the best that suits you and stick to it. Any small disadvantages or advantages that crops out later probably is insignificant.

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Samuel Rhee
Samuel Rhee, Chief Investment Officer at Endowus
Level 4. Prodigy
Updated on 24 May 2019
Dear Anonymous, This is a great question and Endowus has reviewed the pros and cons of accessing various products and we believe that the most efficient way to access certain asset classes or funds is through a third option - Irish UCITS Funds(Unit trusts). I have seen many comparisons but nobody has really delved into the key issues in detail. Because they normally compare the US ETFs vs Irish UCITS ETFs or UCITS ETFs vs UCITS funds. I will review the pros and cons of the respective fund vehicles below; 1. US ETFs on the surface look good as they have lower fees and have narrow bid-ask spreads but this is more than offset by the huge witholding tax that it is subject to (For example, if dividends are 3% then you will be charged 1% which dwarfs any benefits of lower fees/narrow bid ask spreads). Recouping taxes is notoriously difficult as the money is co-mingled (meaning the dollar invested is not in your name and the tax refund is not specific to you) - you only get partial refund and you have to wait a long time after the money has been deducted to get a refund and God forbid you take your money out from the platform before the refund comes through as you may never get it back. 2. Irish UCITS ETFs simply solves the tax issue but on the other hand you have less choice in terms of ETFs, the bid-ask spread is quite wide as liquidity is poor, and finally the fees are higher as they tend to be smaller in scale and scale vs cost is directly and inversely correlated. However, you can bypass the bid-ask spread issue by accessing them through market makers at a small fee at NAV (this is the actual price/value of the fund = and please remember ETFs are funds as well but they are just listed to provide intraday liquidity and readily tradeable. This is a key point I elaborate on later). 3. UCITS Funds. Apart from the fact that these funds are tax-efficient like the UCITS ETFs, they also have no bid-ask spread. NONE AT ALL. This is because you can buy/sell it at the actual NAV. Even US ETFs have bid-ask spreads and some US ETFs are very wide at times. The whole point of ETFs and the reason they have bid-ask spreads is because it is exchange traded. If we trade US or UCITS ETFs from Singapore then we normally trade only once a day so it defeats the whole purpose of using ETFs which is supposed to provide live intraday liquidity. They trade once a day and provide liquidity once a day. So there is no benefit to ETFs other than the other factors focused on cost, which on balance including tax and FX risk, they lose out on. We are not taking advantage of the most important aspect of why ETFs exist. Furthermore, for UCITS funds, because you are buying at NAV at daily liquidity there is no additional cost of transaction and no need to inefficiently fractionalize shares(llike ETFs) as you can invest to the cent at NAV price. Finally, these funds have a broader choice than UCITS ETFs and they tend to be at scale much cheaper in terms of total costs. There is also another important factor that many people don't discuss as much as taxes, and that is the impact of FX on risk and returns. We pursposefully build and access UCITS funds denominated in SGD or Singapore dollar hedged products in the case of fixed income products. Whereas you are taking FX risk with US or other ETFs, which involves additional costs. This is a big additional benefit to accessing the products through Irish UCITS fund structures. So if you combine all of that, UCITS Funds from the likes of PIMCO and Dimensional that Endowus uses, are in fact the most cost-efficient, tax-efficient vehicles and removes completely any FX risk. Thereby allowing you to invest your Singapore dollar savings as a Singapore based investors with peace of mind. Thank you! Yours Sincerely, Sam

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Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Updated on 09 May 2019
Since 2001 when world data was first available. This would have covered many market cycles and crises including the 2001 Dot-Com bubble, 2003 SARS epidemic, 2008 GFC, 2010 Euro Debt Crisis I, 2011 Euro Debt Crisis II, 2015/16 China meltdown. The backtesting is carried out to provide scientific basis for our return & risk projections. That said, we strongly urge you to assess our actual investment returns which are published and updated on our website https://www.autowealth.sg/strategy.php This practice of publishing investment returns is a reflection of our confidence to deliver superior returns and also a reflection of our values to provide transparency. We note that we are the first in the robo-advisory space and the only one to do this.

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Dear Anonymous, Endowus currently has a minimum investment of $10,000. We started with a minimum of $100,000 and accredited investors only services, but we have broadened our service to retail clients as well with the lower minimum of $10,000. We understand that this is not a small sum, but we hope that investors will be investing through Endowus as a core part of their investment portfolio as we have built it as such. We feel that Endowus must focus on providing holistic financial and investment advice. This includes providing lifetime financial planning including retirement and goal based savings and investments, which is a core focus for us. We will be launching exciting new services in the coming months as we officially launch our services to the retail market. Currently, we are only receiving new clients through reverse enquiry. We are unlikely to lower our minimum for now, because of business and strategic reasons. But if there are any changes then we will let you know. In the meantim, please do check out our new landing page which will launch in the next week or so and learn more about what we are trying to do. Thank you! Sam

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Dear Anonymous and John Thank you for the question. Just to clarify on what Samuel from Endowus have shared regarding the use of 2 equity funds that MoneyOwl uses versus the 1 fund that Endowus uses. The 2 funds MoneyOwl uses (the Global Core Equity Fund and the EM Large Cap Core Equity Fund) has a combined total expense ratio (TER) of 0.37-0.38%, as compared to the 0.43% of the World Equity Fund used by Endowus. Also, the 2 funds that MoneyOwl uses track the MSCI World and the MSCI EM respectively, and are a cost effective way of getting diversified equity exposure. Our 88%12% Global/EM split reflects the MSCI All Country World Index, which is typically used to represent World Equity exposure. This is not to say that the DFA World Equity Fund used by Endowus is of lesser quality than the one that MoneyOwl uses. We believe that all 3 funds can give investors a good investment experience at a cost that is efficient. We just wanted to clarify that it is not true that the World Equity Fund used by Endowus relative to the 2 funds MoneyOwl uses is the most cost effective way in implementation from Dimensional. At the end of the day, it is how each company wants to execute the asset allocation for their clients in the best way where they think it will give them the best investment outcome after taking cost into consideration. In this regard, both Endowus and MoneyOwl use funds that are considerably lower than what is offered elsewhere. With regard to Fixed Income, MoneyOwl’s philosophy is that the fixed income portion of the portfolio is used for diversification across asset classes and for its negative correlation to equities, effectively acting as a buffer to the equity component in a portfolio during times of volatility. As such, we focus on high investment grade (A and above) bonds that are stable and are fully hedged to SGD so that the returns are not eroded by unfavourable currency movements. The fund has a TER of 0.29% and does not have emerging market bond exposure, but instead has a well-diversified portfolio of about 180 issues (bonds) across 16 countries that make up a large part of the global bond market. It is designed to be part of a total return portfolio to capture and improve expected returns from both yields and capital gains based on information readily observable in bond prices today, without having to forecast what may happen to yield curves around the world in the future. Our goal is for fixed income to provide a high level of portfolio stability during times of market stress to allow our clients to remain invested in their portfolios to capture long term equity returns. In addition, I would like to clarify that iFAST does not own Providend contrary to what was mentioned by Samuel from Endowus. While it is true that iFAST is a corporate shareholder of Providend, Providend is majority owned by individual shareholders and most of them are employee shareholders of which I am the biggest individual shareholder of Providend. And although iFAST is a corporate shareholder of Providend we are not obliged to use them. Our corporate governance would not allow that. In fact, we had relationship with Navigator and also currently have a relationship with another platform, FAME by Philip Securities. We are also free to use other platforms such as Havenport, Saxo and the like. Some of these platforms have approached us and we have also approached some of them before. But having spend the last 2 decades working with various platforms, and having managed end consumers' money through various crises especially the GFC in 2008, we have come to realise that besides cost, factors such as quality of platform, especially in terms of client service, accuracy in reporting and experience serving large number of advisory clients are very important, especially when markets become difficult. While we try to keep cost efficient. We are mindful that we need to balance it with having a safe, secure and experienced platform/custodian as that is the place where we "store" our clients' hard earned money. As MoneyOwl's asset under management becomes bigger, we will always try to bring this custodian and platform cost down for our clients. In my personal opinion, both MoneyOwl and Endowus are good companies that investors can trust. Both companies serve clients with different needs and preferences. Both companies try to be as cost efficient as possible for our clients and to do the right thing. Ultimately, investors should decide who to use to build wealth based on which company can better serve their needs. I would be happy if Singaporeans use either Endowus or MoneyOwl to build their wealth. I think their money is in good hands.

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Yes, I certainly agree with Gabriel and Hariz. Let me share with you my observation during the 2008 GFC. During that period I was still in the sovereign wealth fund GIC. Investment professionals were split in opinions on whether a crisis is about to unfold. Even professionals with decades of experience cannot time the market, so I would really suggest individual investors not to fall for the disillusion of timing markets. We are just not as sharp as gurus like George Soros, unfortunately. Secondly, many investment professionals were way pessimistic or conservative way too early. They held high allocations to cash and tend to miss the run-up. When the crisis finally develop, they panic thinking it would be the end of world stock markets ("this time is different" phenomenon) and did not buy into the discount, thereby squandering away a precious market opportunity. Therefore, in conclusion, its more discipline to maintain a consistent risk profile throughout. Astute investors would have always set aside emergency funds. If there are no foreseeable need for the emergency funds, you may utilise part of it to take advantage of market corrections that presents itself from time to time to improve your investment returns. Do replenish the utilised portion when you receive your subsequent months of wages though.
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