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

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

Updated
July 22, 2022
published
June 8, 2022
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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)

Amundi Index MSCI World

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)

Amundi Index MSCI Emerging Markets

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)

Amundi Prime USA

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)

Amundi Index Global Agg 500m

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)

Allianz Income and Growth

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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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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Fund Digest May 2022

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