MoneyOwl

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About MoneyOwl

MoneyOwl is a MAS licensed financial advisor and fund management company. Being Singapore’s first Bionic Financial Advisor, MoneyOwl fully utilises humans and technology to help customers develop a uniquely customised financial plan. With the understanding that while money is very personal and involves emotions, the technology employed will aid in integrating complex financial models into one’s financial plan with ease and precision.

How It Works

Investment Journey

  • Go through needs & risk analysis
  • Login or Sign up
  • Set up an Investment Account and confirm your portfolio
  • Allow 1-2 working days to process through the Online Form OR immediate approval for most cases through MyInfo
  • Investment Account Opening
  • After completion of all the above steps, your Portfolio is now ready to be funded

Funding Process

  • Transfer Investment amount by online banking
  • Funds received in cash account within a day subjected to use of FAST/PayNow. To avoid delay, it is of utmost importance that the Reference Code is indicated in the transfer.
  • For Lump Sum: Cash account deducted and buy order placed
  • For Monthly: Buy order placed on 15th of the month (or next working day after 15th)
  • Portfolio holdings updated within 4 working days in your account

Good To Know

  • Minimum age required to open an Investment Account is 18 years old
  • Minimum one-time investment amount is $100
  • Minimum monthly investment amount is $50

For additional info, you can visit MoneyOwl’s Investment FAQ here.

MoneyOwl's Fees

  • MoneyOwl Advisory Fees: 0.65% p.a
  • Platform Fees: 0.18% p.a
  • Fund Expense Ratio (Estimated): 0.3% to 0.4% p.a
  • There are no fees for the closure of a MoneyOwl Investment Account

Don't forget to leave your feedback on MoneyOwl here!

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MoneyOwl

Investments

Robo-Advisors

Hi Caleb, thanks for your questions. This is Chris, CEO Providend and Executive Director of MoneyOwl As our investment philosophy is one where we do not believe in market timing and also we believe in the use of low cost instruments, we will only bring in funds who meet these criteria. Unfortunately, there aren't many of such funds in Singapore as most financial advisers in Singapore do not want to "sell" these funds as they cannot get a trailer commission from them. As such, not many fund managers want to bring their low cost funds into Singapore as there is no demand from the advisory industry. But we will continue to be on the lookout for such funds and will do our best to persuade them to bring these funds in for Singaporeans. With regard to tiered-pricing, we hv not yet arrive at a decision. This is because we have conceived our services as a mass market service and it is this group of Singaporeans whom we really want to help. Also, our margins are already very thin. As much as we want to be cost efficient for our clients, we also need to price it at a level that is sustainable for us so that we can journey with clients for the long term. Having said that, we are not closed to the idea of tiered-pricing but the investment amount has to be a significant quantum before we can do so. For SRS, while the funds from Dimensional are already SRS approved, we are working hard with our platform (iFAST Financial) to bring it to our clients. We are looking at Q4 but hopefully earlier. We will definitely keep you and our followers on FB informed once we have it. Hope this clarifies!

MoneyOwl

Investments

Robo-Advisors

Junus Eu
Junus Eu,
Top Contributor

Top Contributor (May)

Level 8. Wizard
Answered 3w ago
I was browsing around and saw that Smartly had a limited time offer on management fees as well!

Robo-Advisors

Investments

SeedlyTV EP04

Stashaway

Autowealth

MoneyOwl

Dennis Hoe
Dennis Hoe, Advisory Team Lead at Moneyowl
Level 3. Wonderkid
Answered 3w ago
Hi, I’m Dennis Hoe, Advisory Team Lead at MoneyOwl. Thank you for your question. As the other respondents have highlighted below, there is a correlation between return and risk. Risk is often proxied by volatility, though in a sense it is only one aspect of risk. The difference between a low-risk and high-risk portfolio typically lies in the asset allocation between equities and bonds, as equities have higher volatility than bonds. A low-risk portfolio generally has higher allocation into fixed income/bonds. If the bonds are of investment-grade, the returns are generally stable and is less volatile. However, the long-term returns are lower, as compared to investing into equities. A high-risk portfolio typically has more allocation in equities. Historically, equities have always been the driver for returns as stock market goes up in the long term due to growth in global demand. In a study of the US market between July 1926 to December 2017 done by Dimensional Fund Advisors, we see that in any 10-year period, out of 991 overlapping periods, equities beat Treasury bills (short-dated government bonds generally regarded as risk-free) 85% of the time. A well-diversified portfolio of equities is better positioned to gain higher return in the long term but it is more volatile (higher fluctuations). That said, while we all know that equities go up in the long term, it is important to be invested in a portfolio that suits your risk appetite in which you can stay invested comfortably throughout the fluctuations during your investment period. Because the worst thing that you can do is get out too early when the market plunges as a result of not being able to handle the volatility emotionally and miss out on capturing market returns. If so, it might be better for you to have some bonds in your portfolio to dampen volatility but stay invested to reap the long-term return of that asset allocation. To determine which type of portfolio is suitable for you, our advice is structured around these 3 factors: 1) Need to take risk – What are you investing for? Are your current resources enough to meet the goal? The higher your goal relative to your resources, the higher the need for return. 2) Ability to take risk – Your financial situation. Do you already have your emergency funds in place? How long of an investment period do you have to reach your goal? The longer the investment period, the more capacity. For a pure equity portfolio, MoneyOwl recommends 15 years to have a high degree of certainty of having no negative annualised returns, based on historical observations over the long term. If “tail events” are excluded, this 15-year time frame reduces to about 10 years. However, the caveat always is that historical returns are not a guarantee of future returns. 3) Willingness to take risk – What is your likely reaction to the fluctuation of your investment return? Will you sell off your investment when the value drops in event of market downturn? This is your tolerance for short-term losses and fluctuations. At MoneyOwl, we believe that successful investing is not about maximising returns. Rather, we emphasise sufficiency of returns and the reliability of those returns. As mentioned, volatility is only one perspective of risk. From a financial planning standpoint, not being able to meet the return you need to live the life you want, or having your purchasing power eroded by inflation, are also risks. Thus, successful investing for individuals is really about getting the highest probability of getting sufficient returns, with as little guesswork and as little as stress possible, that will meet your goals such as financial independence. Having the right asset allocation for market-based returns, keeping costs low and very importantly, staying invested for the long term are the keys to a successful investing experience. Hope this helps – and if you would like to speak with someone, please feel free to contact us at [email protected](mailto:[email protected]). As we are a Bionic Financial Adviser rather than a pure robo, my team of client advisers will be most happy to have a discussion with you about your risk profile.

Robo-Advisors

MoneyOwl

Stashaway

Investments

SeedlyTV EP04

Dear Anonymous, Thank you for investing with us! To answer your question, I would like to refer you to a letter written by our CEO/CIO 3 weeks ago on 13/05/19, titled ‘Investing with Best Odds through Market Turbulence’ . It can be found in the link below: http://bit.ly/moletterfromceo Have a great day! :)

MoneyOwl

Stashaway

Autowealth

Smartly

Robo-Advisors

Dividends

Investments

Endowus

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!

MoneyOwl

Robo-Advisors

Investments

Hao Yu
Hao Yu, Advisory Specialist at MoneyOwl
Level 3. Wonderkid
Updated 3w ago
Dear anonymous, thank you for your suggestions. On your request to show percentage return of your portfolio instead of just showing the dollar amount gained or lost, we are pleased to let you know that we are currently working on it and you will soon be able to see it. On the projected estimate graph, you will remember that just before you open your account to invest your money, we showed a graph that gave the best, median and worst return that can be achieved by your portfolio 75% of the time over your investment period. However, on a short term basis, market sentiments may make your portfolio behave in a way that is different from the long term returns projection. This can sometimes cause panic or over exuberance and influence investor behaviour, something we at MoneyOwl discourage. This was why we hesitated showing this number. But we hear you and we will look at how best we can track your portfolio current performance versus its long-term projection. But If you have any concerns and wish to discuss your current portfolio, you know you can contact us at [email protected] Thank you once again for your suggestions.

SeedlyTV EP04

Investments

MoneyOwl

Stashaway

Autowealth

Robo-Advisors

Chuin Ting Weber
Chuin Ting Weber,
Top Contributor

Top Contributor (May)

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,
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.

MoneyOwl

Investments

Robo-Advisors

Chuin Ting Weber
Chuin Ting Weber,
Top Contributor

Top Contributor (May)

Level 5. Genius
Updated 3w ago
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!
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