Webinar: Endowus Cash Smart - Finding a sustainable cash management solution in this low interest environment
Endowus Insights

Webinar: Endowus Cash Smart - Finding a sustainable cash management solution in this low interest environment

October 8, 2020

Note: As of Nov'21, Endowus Cash Smart Core is now referred to as Endowus Cash Smart Secure. There is no change in the underlying investment offerings.

Interest rates have continued to dip. Banks have made their third wave of revisions to interest rates since May 2020, and robo advisors have updated the projected returns of their cash management solutions.

In this session, Gregory Van, Founding Partner of Endowus and Sin Ting, Chief Client Officer of Endowus will explain:

1. The role of cash management solutions in your wealth

2. Recent interest rate trends and market updates

3. How Cash Smart differs from other solutions

4. Performance of Cash Smart portfolios since launch

5. Future projections for Cash Smart

7:49 The role of cash in our finances

10:16 How much cash should you be holding? Financial goals and risks

18:23 The low interest rate environment and how Endowus Cash Smart has performed

27:07 Why Endowus Cash Smart outperformed projected yields

34:00 Understanding the fees of Endowus Cash Smart

40:13 Is there a risk I could lose money with Endowus Cash Smart?

43:50 How is interest credited to my Endowus Cash Smart Portfolio?

48:08 Will projected yields fall lower?

49:55 How do you decide between Cash Smart Core and Enhanced?

55:56 Demo on Endowus Cash Smart Offering

1:02:02 QnA

The role of cash in our finances 7:49

Cash Management solutions is an important part of financial planning and should be part of a holistic investment plan. The goal here is to better manage your emergency funds, rainy day money, savings for short terms goals better so that you can grow your wealth holistically. The issue is that traditional bank deposits and savings accounts have many restrictions and low liquidity.

Review of Endowus Cash Smart Performance 25:25

Performance of Cash Smart since launch has been better than the projected returns made in July 1. More importantly there was no single day of loss (drawdown) for Endowus Cash Smart Core, and for Endowus Cash Smart Enhanced there was 3 days of loss at its worst period of <0.02%.

The higher projected returns is at the back of lowered interest rate. When interest rates fall, price of bonds increase and vice versa. Interest rates falling led to better performance of Endowus Cash Smart. Endowus Cash Smart annualised returns are at 4.08% for Enhanced and 1.50% for Core. Compared to 1.9-2.2% and 1.1% to 1.3% projected at launch, there was an outperformance.

Endowus Cash Smart versus Stashaway Simple and others 31:20

The underlying funds used across Moneyowl WiseSaver, iFast FSM Auto-Sweep, StashAway Simple and Grab AutoInvest is largely the same, as seen by the underlying funds used by the different platforms. The projected gross yield are figures given by the fund managers, as of 30 August.

The all-in cost for using Endowus Cash Smart is lower if not comparable to other platforms because we rebate all trailer fees received from the fund managers. Any trailer fees we receive from the fund managers will be rebated in its entirety.

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