How to replicate or optimise your MoneyOwl portfolios through Endowus
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How to replicate or optimise your MoneyOwl portfolios through Endowus

Updated
12
Sep 2023
published
31
Aug 2023
MoneyOwl to wind up: How to replicate or optimise your MoneyOwl portfolios through Endowus
  • Endowus can be seen as a natural choice for existing MoneyOwl clients seeking a platform to transfer their Cash investments from their MoneyOwl portfolios (WiseSaver, Dimensional, WiseIncome) or to build a fresh investment portfolio (Cash, CPF, SRS). 
  • One of the biggest benefits of moving to the Endowus platform is that you’re able to not only keep your investments and move them over, but also choose to build more suitable portfolios for your needs and goals. 
  • The Endowus Investment Office has put together this article to provide MoneyOwl clients with information about the underlying funds that MoneyOwl used to build their portfolios, and how those funds compare with Endowus portfolios and solutions. 
  • Endowus’ offerings go beyond a replication of MoneyOwl investments — with a broad suite of Endowus advised portfolios, access to the best-in-class curated funds on Fund Smart, and the Endowus Private Wealth service that offers access to private market and alternative products to accredited investors.
  • As the first and only digital advisor for CPF investing, Endowus remains the only digital wealth platform that allows you to invest holistically across your Cash, CPF, and SRS savings.

One of the biggest benefits of moving to the Endowus platform is that you can keep your investments and move them over. Endowus is one of Dimensional’s largest partners in Asia, and the MoneyOwl Dimensional portfolios can be replicated exactly the same on Endowus Fund Smart, via a unit trust transfer.  Alternatively, depending on your needs and objectives, you can choose to buy the Endowus Factors by Dimensional Portfolio, which is an upgraded and more diversified portfolio made up of only Dimensional funds. The same goes for MoneyOwl WiseSaver, which has the Fullerton SGD Cash Fund as the underlying fund. MoneyOwl WiseIncome investors have more choices and can select from one of the three Endowus Income portfolios with varying target yield payouts. 

Read more: How to unit trust transfer MoneyOwl portfolios to Endowus in a few steps

Comparison of MoneyOwl Portfolios and options on Endowus

1. Analysis of MoneyOwl WiseSaver and the Endowus equivalent

The underlying fund in the MoneyOwl WiseSaver product is the Fullerton SGD Cash Fund. This fund is essentially executing a cash management strategy that helps investors maintain and manage their short-term liquidity needs. This fund is available on Endowus with the same all-in total fee as WiseSaver, which was charging 0.15% p.a. total cost as well.  

MoneyOwl WiseSaver - suggested replacement on Endowus: Fullerton SGD Cash Fund

You can alternatively consider other pre-built Cash Smart solutions offered by Endowus — which may take a little more risk and generate higher yield at the moment — depending on your needs and objectives. This is also true for other products such as short-duration fixed income and longer-duration fixed income if, for example, you want to take advantage of a falling interest rate environment and gain exposure to fixed income products with longer duration or interest rate sensitivity. 

2. Analysis of MoneyOwl Dimensional portfolio and the Endowus equivalents

For those invested in MoneyOwl’s Dimensional portfolios — Equity Portfolio, Growth Portfolio, Balanced Portfolio, Moderate Portfolio, and Conservative Portfolio — the same underlying share classes and funds are available on the Endowus Fund Smart platform, with the same fund-level fees. You can build the same portfolios on the Endowus Fund Smart platform, where you can select the four funds (see below) and plug in the respective ratios for each fund.  We have broken down the ratios in the chart below. 

That said, considering Dimensional’s focus on the proven factors of returns such as small, value, and quality, the equity portfolio has a bias towards large caps — especially for the emerging markets (EM) portion — and therefore does not have enough exposure to the small factor and value factor. The fixed income portfolio has a skew towards the short duration of the fixed income sector in terms of duration and is largely providing developed market exposure with little Asia or EM exposure. 

MoneyOwl Dimensional Portfolios - underlying funds

Endowus also offers two sets of portfolios that are comparable to the MoneyOwl portfolios — the Endowus Factors by Dimensional Portfolio and the Endowus Flagship Portfolios — with better long-term performance. The table below shows a comparison of underlying fund-level fees charged by the MoneyOwl portfolios and the comparable Endowus portfolios. The better performance is net of fund-level fees. 

Portfolio-level TER or fees - Endowus portfolios are priced competitively compared to MoneyOwl

Introduction to the Endowus Factor by Dimensional Portfolios

The underlying funds of the Endowus Factor by Dimensional Portfolios are 100% Dimensional funds, taking advantage of the evidence-based and factor-driven investment process of Dimensional Fund Advisors. When it comes to the fixed income segment of the portfolio, the Endowus Factors by Dimensional Portfolio is more geographically and sectorally diversified. It is constructed with a similar target equity and bond mix as the MoneyOwl Portfolios, but has all 6 options including a 100% fixed income portfolio that MoneyOwl does not have. The Endowus portfolios utilise 7 Dimensional funds — as opposed to the 4 used by MoneyOwl. 

The Endowus Factors by Dimensional Portfolios were built with newly introduced funds by Dimensional Fund Advisors, including the sustainability core Emerging Market Core Equity Fund that provides more broader diversification and factor exposure to small and value. 

On the equity front, this results in a more nuanced portfolio with broader diversification and less correlation between the underlying funds with an overweight on Asian small-cap companies and a slight overweight in smaller cap emerging market companies. As for fixed income, Endowus again has a broader diversified exposure across three Dimensional fixed income funds that also includes the Global Short-Term Investment Grade Fixed Income Fund, which has higher exposure to credit risk but balances that out with shorter duration and interest rate risk. 

Endowus Factors by Dimensional Portfolios - underlying funds

Introduction to the Endowus Flagship Portfolios

For investors who are open to manager diversification in their portfolios, the Endowus Flagship Portfolios can be an attractive option,  depending on your needs and objectives. The Flagship Portfolios combine the best of index investing, systematic investing, and active management through managers such as Dimensional but also through best-in-class fund managers such as Amundi, BlackRock,  and PIMCO. The Flagship Portfolios balance the passive and systematic index-based investment strategy for equities with the broad exposure to the best of active, systematic, and passive investing in fixed income. This approach has resulted in better performance for these Endowus Portfolios on a 1- and 3-year annualised basis, as of 30 June 2023 (last publicly available data on MoneyOwl website), as compared to the MoneyOwl Dimensional portfolios.

Performance comparison: Endowus Flagship Portfolios vs MoneyOwl Dimensional Portfolios

Endowus Flagship Portfolios have largely outperformed MoneyOwl Dimensional Portfolios

Asset allocation comparison: Endowus portfolios vs MoneyOwl Dimensional Portfolios

The table below shows the more nuanced asset allocation model of the Endowus portfolios.

The Endowus portfolios are more diversified in terms of region and market cap for the equity portion and more diversified across the credit spectrum and across the fixed income sectors. This diversification allows for the potential to take advantage of a larger opportunity set.

Endowus Factors and Flagship Portfolios offer a good degree of diversification across regions, vs MoneyOwl Dimensional Portfolios

3. Analysis of MoneyOwl WiseIncome and Endowus Income Portfolios

MoneyOwl WiseIncome employs a traditional 60/40 asset allocation, with 60% allocated to equities and 40% to fixed income. Its risk level is similar to Endowus' Higher Income Portfolio. Clients who are invested in WiseIncome may want to consider either the Endowus Higher Income or Stable Income Portfolios.

Endowus Income Portfolios vs MoneyOwl WiseIncome Portfolios - portfolio payout targets

Both the Endowus Stable Income and Higher Income Portfolios offer higher payout targets than the R share class of WiseIncome, without dipping into capital and sacrificing potential capital appreciation. While the R1 share class of WiseIncome offers an enticing 8% payout target, this comes at the expense of capital appreciation as it dips into the invested capital to maintain the high payout. Endowus generally recommends investing in funds and share classes that do not pay out of capital and provides the three Endowus Income Portfolios based on the individual’s suitability and investment objective, the appropriate target payout, and capital appreciation goals. 

The fee comparison table shows the competitive fee structure of the Endowus Income Portfolios, which generally are priced lower than WiseIncome.

Fee comparison: MoneyOwl WiseIncome vs Endowus Income Portfolios

Endowus Income Portfolios: cheaper portfolio-level fees and better platform fees than MoneyOwl

Looking at the asset allocation comparison table, we can see that WiseIncome is generally more Asian-centric, while Endowus' portfolios are more globally diversified. For example, almost half of WiseIncome is in Singapore REITs, and almost half of its  fixed income allocation is in Asian bonds. In comparison, Endowus' Stable Income has only 30% in Asian bonds, with the remaining invested in other emerging markets and developed market bonds. Endowus' Higher Income's equity allocation is also globally diversified, and its fixed income allocation is more diversified with less than 20% in Asia bonds.

Endowus Income Portfolios offer greater global diversification than the MoneyOwl Income Portfolios

4. Analysis of MoneyOwl CPF Portfolios and comparables on Endowus

The MoneyOwl CPF Portfolios comprises just 2 underlying funds — LionGlobal Infinity Global Stock Index Fund and UOBAM United SGD Fund. This only provides exposure to developed markets in equities and Asian shorter duration fixed income for the fixed income portion. It is a sub-optimal portfolio with little diversification.  While it is possible to replicate the same portfolios using the same underlying funds, which are also available on Endowus at the same fees, this is something we cannot recommend. 

Endowus has worked strategically with Amundi — the largest European asset manager and one of the largest global index investment managers — to bring into Singapore some of the lowest-cost passive index funds for CPF investing, made available exclusively on the Endowus platform. Read more about these equity and fixed income funds from Amundi.

The Endowus CPF Portfolios offer greater diversification in terms of geography, sector, funds, and managers that allows for a closer replication of global markets in equities and fixed income. The lower cost and better risk-reward means that across the risk spectrum, it is able to generate closer to benchmark and global market returns. The Endowus CPF Portfolios employ 8 different funds across both the equity and fixed income components as shown in the table below.

Endowus CPF Portfolios - underlying funds

Even with the benefits from the greater diversification and nuanced asset allocation models, the fees (total expense ratios) for the Endowus CPF Portfolios remain similar to the MoneyOwl CPF Portfolios at the fund level. Also, the portfolios are available across all 6 levels of targeted risk based on the asset allocation from 100% equities to 100% fixed income in 20% asset allocation ratio increments. 

CPF: Endowus Flagship Portfolios are priced similarly to MoneyOwl CPF Portfolios

Another option is to use Endowus Fund Smart to create your own portfolios from scratch. For example, a portfolio combining the Amundi Index MSCI World Fund for equities, and the Amundi Index Global Agg 500m Fund for fixed income would have a TER of 0.10% p.a.

Endowus is this, and so much more

Beyond the investment options discussed above, Endowus has built a full-service investment platform including the following key features:

  • Greater access to investment options: Across Cash, CPF and SRS funding sources, Endowus has a number of advised portfolios expertly optimised by our Investment Office to target returns across the risk spectrum, and generating passive income if needed. Through Endowus Fund Smart, clients can also buy funds or create their own custom portfolios, selecting from a curated list of 300+ funds managed by 70+ global and local managers including Dimensional, BlackRock, Fullerton, Lion Global, Amundi, PIMCO, among many others. 
  • Low fair fees: Similar to MoneyOwl, Endowus has no subscription fees, provides 100% Cashback on trailer commissions, and only charges an all-in Endowus Fee, ranging from 0.05% to 0.60% p.a. based on your funding source and invested assets with us. Find out more about our fees.
  • Automated and human advice: Endowus is an award-winning and top-rated wealth and fund platform, and this is in large part due to the combination of our on-platform automated advice and in-house human client team to help you along the way. Get in touch with our licensed advisors.
  • Safety, security: Endowus clients are given an account in their own name at UOB Kay Hian, Singapore's largest broker and a CPF Investment Administrator. This double-ledger system ensures that the security and continuity of our client's positions is a priority. Read about the safety and security of your assets.
  • Endowus Private Wealth and access to private markets and alternatives: For accredited investors who are looking to receive more personalised long term financial planning service for their family and access to private markets solutions or alternatives. Click here for details on Endowus Private Wealth.
  • Business growth and shareholders: While the exit of MoneyOwl may raise concerns about other digital players, please be rest assured that Endowus is secure and sound. We have uniquely scaled the business to over S$6 billion of assets and are multiple times the size of our competitors. Today, Endowus is well capitalised, recently raising US$35 million (S$47 million) — taking our total funds raised to over S$128 million to date. We are backed by leading global financial institutions such as UBS, Citi, and MUFG (largest bank in Japan and largest shareholder of Morgan Stanley), as well as local and global champions like Singapore’s EDBI, Singtel Innov8, Z Holdings, Samsung, Lightspeed, Softbank, Prosus (Naspers), some of the wealthiest Asian families. See our recent S$47 million fundraising announcement here.

We feel confident that you will be able to find a new home for your investments at Endowus that will allow you to build your wealth for many decades to come. We are committed to serving our clients the same way you have been served by our friends at MoneyOwl in the past, with the same level of integrity, independence and fiduciary care.  

We would like to offer MoneyOwl clients joining Endowus in this period a limited offer.  Sign up by 30 Sept 2023 and your investments will be managed free for the next 6 months, when you sign up via this link*

You can also reach out to our MAS-licensed Endowus client advisors if you have any questions or queries on support@endowus.com

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FAQs

1. Is Endowus at risk of closing too?

  • We have a strong growth trajectory, strong backing from some of the biggest investors behind us and a clear path towards scale and profitability. Furthermore, we were the first to introduce major safeguards for custody of client assets, where assets are custodised in a client’s own name at UOB Kay Hian, Singapore’s largest broker. 
  • Since the inception of the company, our revenue has had no negative growth quarters, with 2Q 2023 being a record quarter and 3Q poised to supersede that as a new record quarter. 
  • We now have group assets of more than S$6 billion. We are at multiples of the size of the next closest player in digital wealth and continue to grow strongly in 2023 in both assets and revenue. 
  • Endowus recently secured another large, oversubscribed fund raise of US$35 million (over S$47 million) from new investors, including some of the largest global banks and leading wealth managers — UBS (the largest private bank in the world), MUFG (the largest bank and financial group in Japan and the biggest single shareholder of Morgan Stanley, the largest wealth management company in the world), and Citi (a global leader in wealth through its private and retail banking franchise globally, and affluent banking through Citigold and a leader in technology in the wealth space). 
  • We also secured investments from another four Asian billionaire families and their family offices. This is in addition to several existing investments made by some of the wealthiest Asian families from prior rounds. Many of our largest existing investors also participated again in this round, a testament to their belief and support in the growth of the business. They include the Singapore government’s own EDBI, global venture capital firm Lightspeed Ventures and Prosus Ventures (owned by Naspers, the largest shareholder of companies such as Tencent and Delivery Hero), as well as Innov8, the venture arm of Singapore’s largest telco Singtel. Their continued investment and strong support is testament to their belief in the strategy and execution of the team at Endowus, and they will continue to support us with the strategic value they create for us. Most of these are long-term strategic investments via permanent capital from these investors’ balance sheets, rather than via fund structures which could face pressures to exit to achieve short-term outcomes. These investors are aligned to the long-term growth of the Endowus business and to the long-term successful investment outcomes of our clients. 
  • Our focus on personalised advice, access to institutional-quality investment solutions at the lowest cost possible, exceptional user experience, as well as the unique ability to invest across your Cash, CPF and SRS savings, has differentiated us from other wealth management players. 
  • We were the first digital advisor to be approved to advise on CPF investments, a testament to our business model and cutting-edge technology. 

2. How are you different from MoneyOwl? Both of you support CPF investing and have exclusive access to Dimensional funds for example, don't you?

  • We are the first digital advisor for CPF monies, providing a seamless experience in investing your CPF with best-in-class solutions. We have also announced that we have crossed  over S$1 billion of pension assets advised on our platform.
  • We have also worked with fund managers to onboard new low-cost index funds that are often exclusive to us. However, we offer much broader and holistic wealth management for all Singaporeans and residents. This means that clients do not just have the option of investing their CPF savings with us, but also their cash and SRS savings. 
  • We have a wide range of investment solutions to suit our clients needs - Flagship Portfolios across the risk spectrum, Income-focused Portfolios, ESG-focused Portfolios, Thematic Portfolios etc. We also have Alternative Funds such as PE/HF/Private Credit Funds for accredited investors (AIs).
  • As a digital-first platform, we have also built a differentiated investing experience via a market-leading UX/UI and innovative technology and infrastructure. However, we are not digital-only, which means that you can also get the advice from a dedicated and experienced team of licensed client advisors. 
  • Most importantly, our focus on advisory, access to institutional quality investment solutions at the lowest cost possible has differentiated us among other wealth management players. 

3. I have investments with MoneyOwl. Can I move these monies over and if so, how?

  • Yes, you may be able to transfer your unit trust investments across to the Endowus platform depending on what portfolios you hold. Alternatively, for the unit trusts that cannot be transferred, you can potentially choose to liquidate and invest into our Endowus portfolio.
  • If you share your latest portfolio positions or statement with us, we can better advise you on what unit trusts can be transferred over or suggestions for portfolios to switch into.
  • You may also refer to our FAQ on unit trust transfers into Endowus Fund Smart.

4. What would happen to my investments if Endowus closes down?

  • We have designed our business model with the safety and security of our clients assets in mind. Endowus clients are given an account in their own name at UOB Kay Hian, Singapore's largest broker and a CPF Investment Administrator. 
  • Clients send money to UOB Kay Hian directly, and UOB Kay Hian processes transactions on the instructions of Endowus, so we never touch your money. This double-ledger system ensures that the security and continuity of our client's positions is a priority.
  • In the unlikely scenario where Endowus ceases to operate, for whatever reason, you would still retain the UOB Kay Hian account in your own name with your investment assets, and will have full access to your UOB Kay Hian account. Because the money is not commingled or custodised by us, you can maintain your UOB Kay Hian account for as long as you want, and redeem your investment holdings at any time with no additional cost. 

Read more: Robo advisory firm MoneyOwl to wind up, in shock announcement

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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 Endowus Singapore 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, 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.

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MoneyOwl to wind up: How to replicate or optimise your MoneyOwl portfolios through Endowus

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