Incoming — find robust income with dividends and yield (Fund Digest September 2022)
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Incoming — find robust income with dividends and yield (Fund Digest September 2022)

Updated
29
Mar 2023
published
7
Oct 2022
Income funds and income investment portfolios - Fund Digest Sept 2022

Want distributions from your Endowus investments to go straight into your pockets? Now you can — Endowus has added a new function so investors can choose to receive distributions instead of reinvesting them. 

This new function comes as investors may be looking closer at income-focused funds. With that in mind, the Investment Office has curated a list of funds with robust levels of payouts and that are backed by unique investment strategies. These are easily available on Fund Smart — to filter for income-focused funds, simply tick "dividend/income" under the "Investment Style" filter on the Endowus Investment Funds List

Spotlight on income-focused funds

Fund name, ISIN 12-month yield* 3-year annualised returns**
Aberdeen Standard SICAV I - Global Dynamic Dividend Fund
SGD Dist: LU2237443549
A globally diversified equity fund with high dividend targets
7.17% 1.26%
Allianz Income and Growth Fund
SGD Dist: LU0943347566
A multi-asset portfolio of US and Canadian large-cap stocks, convertibles, and high-yield bonds
10.06% 3.83%
BGF European Equity Income Fund
SGD Dist: LU2357541858
A balanced exposure to quality, growth, and income via a basket of European equities
4.36% 1.20%
Manulife Preferred Securities Income Fund
SGD Dist: LU1850216372
A diversified basket of US preferred securities, an attractive asset class with yields similar to high-yield bonds but with a credit rating that is, on average, investment grade
7.39% -2.14%
PIMCO GIS Income Fund
SGD Dist: IE00BSTL7535
High-yielding and high-quality assets from various global fixed income sectors, allocated dynamically based on PIMCO’s macroeconomic views
4.81% -0.60%

*The 12-month yield for a single fund is the sum of the fund’s total trailing 12-month interest and dividend payments divided by the last month’s ending share price (NAV) plus any capital gains distributed over the same period.
**The three-year annualised returns are calculated based on the returns of the target share class, and the oldest share class of the fund where the target share class is younger than three years. Three-year annualised returns are based on the period from Oct 2019 to Sept 2022 unless otherwise stated. Returns are translated into SGD (except for non-SGD funds) and are net of fund-level fees.

Customise your ideal investment portfolio in minutes with Endowus Fund Smart. The Endowus Fee for Single Fund Goals via Fund Smart (Cash, CPF, and SRS) is 0.3% p.a., reinforcing our commitment to reduce the cost of investing. This pricing means that more than 95% of the funds are now cheaper on Endowus than on any other fund platform, bank, private bank, financial advisor, or broker in Singapore.

Not sure how to invest with Fund Smart? Find out everything you need to know in our FAQs.

Passive income solutions for every stage of life

Besides investing in single funds on our Fund Smart platform, investors may also consider the Endowus Income Portfolios, which have a specific goal in mind — to pay out an income stream to investors.

These three portfolios are designed for different life stages, whether you’re a retiree seeking regular, passive income, a working adult with a family to support, or a young adult with major life goals ahead.

Portfolio Current payout target* Who is it for? Portfolio-level fee after rebate**
Stable Income 4.0% to 5.0% Retirees or those who want a stream of regular passive income to meet expenses reliably 0.64% p.a.
Higher Income 5.0% to 6.0% Working adults with higher living expenses and a family to support, and aiming to grow wealth moderately in the long run 0.78% p.a.
Future Income 3.0% to 4.0% Younger adults with a greater focus on long-term goals, and looking for some regular income to offset expenses today 0.70% p.a.

*Current payout targets are not guaranteed and are estimates only.
**Endowus does not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Fee.

Funds for accredited investors (AIs) only

We have also added two new AI-only funds this month.

Want to know more about the funds available on Endowus Fund Smart? Refer to our investment funds list here for a quick overview in a single glance.

If you wish to invest in an accredited investor-only (AI-only) fund or a non-SGD fund, please contact support@endowus.com. 

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Before you proceed, note that income investing — be it through single funds or an income portfolio — may not be the most suitable for everyone, depending on your financial situation, goals, time horizon, and risk tolerance.

Our licensed representatives are here to offer you advice in line with your investment objectives before you make a decision. To reach out to them, simply schedule an advisory call here.

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Investment involves risk. Past performance is not necessarily a guide to future performance or returns. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund.

Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endow.us Pte. Ltd (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus Pte. Ltd., its affiliates, directors, employees, representatives or agents have given any consideration to, nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider (i) whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.

Investment into collective investment schemes: Please refer to respective funds’ prospectuses for details of the funds, their related fees, charges and risk factors, The listing of units of the fund on a stock exchange does not guarantee a liquid market for the units. Before making an investment decision, you are reminded to refer to the relevant prospectus for specific risk considerations.

For Cash Smart Secure, Cash Smart Enhanced, Cash Smart Ultra: It is not a bank deposit and not capital guaranteed, and is subject to investment risks, including the possible loss of the principal amount invested. Investment products are not insured products under the provisions of the Deposit Insurance and Policy Owners Protection Schemes Act 2011 of Singapore and are not eligible for deposit insurance coverage under the Deposit Insurance Scheme. Interest rates are indicative and subject to change at any time.

Product Risk Rating: Please note that any product risk rating (the “PRR”) provided by us is an internal rating assigned based on our product risk assessment model, and is for your reference only. The PRR is subject to change from time to time. The PRR does not take into account your individual circumstances, objectives or needs and should not be regarded as advice or recommendation to purchase, hold or sell any fund or make any other investment decisions. Accordingly, you should not solely rely on the PRR in making your investment decision in the relevant Fund.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

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Income funds and income investment portfolios - Fund Digest Sept 2022

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