Passive investing just got a whole lot cheaper (Fund Digest May 2022)

Five new funds have joined our Fund Smart platform this month: four passive index funds from Amundi and one highly popular Income & Growth fund from Allianz Global Investors.

Developed World Fund

Amundi Index MSCI World

ISIN: LU2420245917 (SGD), LU2420245321 (USD)

This is currently the lowest cost passive index fund in Singapore for exposure to the developed market equities index. Using an effective and cheap physical replication method, the fund tracks the MSCI World Index that represents large and mid-cap equity performances across 23 developed markets.

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Emerging Markets Fund

Amundi Index MSCI Emerging Markets

ISIN: LU2420246139 (SGD), LU2420245750 (USD)

This is the first low-cost passive index fund in Singapore for exposure to the emerging market equities index. The fund tracks the MSCI Emerging Markets Index, which represents large and mid-cap equity performance across 24 emerging markets, reflecting around 1,400 holdings. Amundi, as one of the largest passive managers in the industry, uses a physical replication method to track the index. The fund has a track record of more than five years in accurate and cost-effective tracking.

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US Fund

Amundi Prime USA

ISIN: LU2420246055 (SGD), LU2420245594 (USD)

This is the cheapest equities unit trust in Singapore, and the lowest-cost passive index fund in Singapore for exposure to the US equities stock market. The fund provides an extremely low-cost exposure to the large and mid-cap equity market in the US, by tracking the Solactive GBS United States Large & Mid Cap Index. The index reflects the performance of around 550 companies and covers about 85% of the free-float market value of the US market. The index is very similar to the more commonly known S&P 500 index but the use of the Solactive index allows the fund to achieve the lowest fee in the industry of just 0.05%.

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Global Fixed Income Fund

Amundi Index Global Agg 500m

ISIN: LU2420246212 (SGD), LU2420245834 (USD)

This is the lowest-cost passive index fund for global fixed income market exposure and is SGD-hedged. The fund is an accurate and cost-effective solution used to track the Bloomberg Global Aggregate (500 Million) Index, which is a variant of the standard Global Aggregate Index that requires higher outstanding minimums for bonds. The index, and correspondingly the fund, has over 16,000 bonds and 2,000 issuers with primarily investment grade ratings. The fund uses sampling replication to track the index.

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Other New Funds

Income Fund

Allianz Income and Growth

ISIN: LU0943347566 (SGD)

An income and growth fund that is highly popular among clients at private banks. The fund taps into a basket made up of approximately one-third equities, one-third high-yield bonds, and one-third convertibles primarily issued by US companies. The aim is to generate not only growth opportunities, but also income across various market conditions. Managed by a veteran team of PMs with over 20 years of experience on average, the fund has demonstrated favourable long-term returns and payouts.

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Accredited Investors Only

We have also added five new AI-only funds this month.Want to know more about the funds available on Endowus? Refer to our investment funds list here for a quick overview in a single glance. If you wish to invest in an AI-only or a non-SGD fund, please contact support@endowus.com.

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