Webinar: Fund Smart Series — Curating the best-REIT, income and dividend funds

Endowus has recently added more REIT, income and dividend funds to its Fund Smart platform. As investors search for yield and stability, the new solutions can help investors create more robust portfolios.

0:00 Introduction

2:30 Introduction to Endowus Fund Smart

9:05 Constructing a diversified portfolio with Fund Smart, and adding 11 new funds

13:06 Criteria and Risks involved for an Income Portfolio

23:54 United Global Durable Equities Fund

29:37 United Asia Pacific Real Estate Income Fund

34:20 AB Low Volatility Equity Portfolio Fund

38:55 AB Short Duration High Yield Portfolio Fund

44:46 AB American Income Portfolio Fund

49:51 AB Global Income Portfolio Fund

52:00 Allianz Global High Yield Fund

57:25 Legg Mason Brandywine Global Income Optimiser Fund

1:02:02 Threadneedle US High Yield Fund

1:04:58 Neuberger Berman Short Duration Emerging Market Debt Fund

1:08:29 Neuberger Berman Strategic Income Fund

1:10:42 How to use Fund Smart

1:17:55 QnA: Why is it that for some funds there are no trailer fee rebates?

1:21:07 QnA: How do we select the best funds in fund smart?

1:22:44 QnA: Which are the best funds, as well as the recommended proportion of portfolio, that help us capitalise on the growth of China in the next 10 years?

1:24:50 QnA: What role do these new income funds play, versus Endowus's current 100% core advised fixed income portfolio?

Excerpts from the webinar

Introduction to Endowus Fund Smart (2:30)

Wei Mei: Fund Smart is where you can go to customize your own portfolio. All the funds that we use for our advised portfolios and Cash Smart portfolios are available at Fund Smart. The key difference is that you can set your goals, assess your own suitability, run the projections in expected returns or volatility and look for something that is more in line with your requirements on Fund Smart. Further, you can execute the portfolio securely, it is very much the same as what we offer with our Cash Smart and our advised portfolios, meaning that it will still be executed and held in custody at UOB Kay Hian.

So what does it mean when you select your own funds to build your portfolio? Most of you know that Endowus provides a very low cost set of solutions for our clients, but it is important to note that there are some differences in these solutions when we look at different share classes. While there are no sales fees, no transaction fees, and you have access to institutional share classes and 100% trailer fee rebates, you will receive two different types of outcomes when you select funds with us.

Creating your own Portfolio of Funds (9:21)

Wei Mei: Having a goal in mind is the most important consideration you need to make when creating your own Portfolio of Funds. You have to ask yourself: what do I want to achieve from creating this investment portfolio? For example, someone who is in my age group generally has a higher amount of expenses (eg. mortgages, liabilities, family members to take care of, etc.), therefore, my goal should be that this investment portfolio should help pay for my expenses.

The second consideration you need to decide on is your risk tolerance. This is something you need to assess based on your ability to withstand drawdowns in a portfolio and how you would personally feel about market downturns. For example, if you had panicked during the market downturn in March 2020 and sold all of your holdings, this would mean you have a low risk tolerance.

The third consideration you need to think about is diversification. Here at Endowus, we always say that diversification is the only free lunch when it comes to investing but we do still see a lot of our clients with concentrated portfolios. If you want to have a good night's rest, you do need to make sure that you are spreading your eggs across a much wider basket.

QnA: Which are the best funds, as well as the recommended proportion of portfolio, that help us capitalise on the growth of China in the next 10 years? (1:22:44)

Yulin: While Endowus does have a few China funds, this would depend on your view on the overall China market -- whether you are particularly bullish on the China A onshore market or the broader regional China market (eg. equities listed in Hong Kong). At Endowus, we have regional China funds, which you can view by filtering them out on our fund list. For instance, we offer a China A share equity fund by Aberdeen Standard and a greater China fund by Schorders. As of right now, we are working on due diligence with some other China A funds that offer different investment styles.

In terms of the allocation to China, it is still a concentrated bet on the growth of China and would only recommend allocating a portion of your portfolio to the China markets but not 100%, especially if you?e not comfortable with the prospect of losing half of your savings when market volatility happens. As mentioned earlier, it is important to diversify your portfolio and spread out your eggs.

To learn more about the funds listed on Endowus fund smart, please go to our investment fund list for more information.

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