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
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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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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