Inflation in Singapore has not been so high for some 10 years now. Simply put, the cost of living is rising more sharply this year than in recent times. The pressure applies to investing fees too.
As it is, a Morningstar report showed that Singapore is ranked below average out of 26 markets in terms of fees and expenses.
Our annual Endowus Wealth Insights 2022 annual report found that the rising cost of living dominates as the top concern for most respondents. Of those polled, 45 per cent say inflation is their top finance-related worry for the year ahead. Investors remain open to putting in more money in the markets in 2022, but are watching more carefully the fees behind investments.
Fund Smart: a low-cost platform for more than 200 unit trusts
Enter Fund Smart. The Endowus fund platform is now the lowest cost fund platform for Singapore-based investors for more than 95% of funds on our platform. Our promise is in offering access to some 200+ best-in-class unit trusts at just 0.3% per annum for single fund purchases.
Across our suite of products and services, Endowus also remains committed to improving affordability of investing for everyone. That means 100% cashback on trailer fees, 0% sales charges, no transaction fees, and no lock-ups.
Since Oct 2020, our clients’ investments under Fund Smart have grown by about 10 times as of March 2022.
Positioning for inflation and volatility in 2022
Endowus provides access to unit trusts that may meet your needs to buffer against uncertainties in the current macro-environment.
We look at the top performing funds so far to discuss some options for investors across different asset classes or sectors.
For example, the Dimensional Global Targeted Value Fund offers exposure to value stocks that investors expect would outperform growth stocks. Meanwhile, the LionGlobal SGD Enhanced Liquidity Fund, provides an ultra-short duration bond offering to investors looking for exposure to rising short-term rates in this current macroenvironment.
For investors looking for an inflation hedge, they can consider exposure to healthcare, commodities, and properties. These sectors are typically outperformers in an inflationary environment, with funds such as the AB International Health Care Portfolio Fund, the PIMCO GIS Commodity Real Return Fund, and the Janus Henderson Global Property Equities Fund being more outstanding in performance so far.
While growth stocks have faltered this year, investors still looking for technology exposure with a twist are looking at Fidelity Global Technology Fund. This is a contrarian technology portfolio that allocates about half of its fund to stocks that have less growth characteristics and that are driven by long-term fundamental catalysts.
By standing on the shoulders of giants, we screen among the top fund managers for only their highest quality funds for use in your portfolios. Interested in investing in the best-in-class funds that we’ve curated for you? Find out more from our Investment Fund List.
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.
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