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Endowus launches first-of-its-kind multi-manager passive income portfolios for investors at different life stages

Jan 2022

● New Endowus Income Portfolios were professionally designed to meet the unique needs for passive income of investors across various life stages 

● Current target payout rates range from 4.0% to 6.0% p.a. for the Endowus Income Portfolios with some also designed to grow capital to increase future payouts
● Unique features of the Endowus Income Portfolios compared to existing market offerings include a multi-fund manager, diversified portfolio without lock-in periods, and no exclusive arrangements with fund managers to lower fees for clients

● Soft launched to existing Endowus clients in December, more than S$10 million funded into the Income Portfolios in just three weeks

Endowus, a leading digital wealth platform, has officially launched the Endowus Income Portfolios, which cater to the increasing demand from investors seeking passive income to meet their financial and lifestyle goals. A first-of-its-kind in the industry, the Endowus Income Portfolios were designed to match the different needs, risk appetites and goals according to the varying life stages of Singapore-based investors. 

The three life-stage based portfolios – Stable Income (for the older generation), Higher Income (for the “sandwich” generation) and Future Income (for the younger generation) – have varied monthly payouts pegged to different risk tolerance levels and immediate income needs. They all have the same ambition of facilitating a viable and stable long-term passive income stream with capital preservation in mind. 

The current target payouts are projected to range between 4.0% to 6.0% per annum. All three portfolios are built with a focus on market resilience as an all-weather approach, investing in a diversified portfolio across geography and best-in-class fund managers. As with all Endowus offerings, there are no sales or redemption charges, while 100% of trailer fees are rebated, making the Endowus Income Portfolios affordable and flexible for all investors. 

“Many clients have been actively seeking a passive income solution that is suitable for them. There are a vast array of options available in the market today. These options look too similar, are often too costly and do not lead to good outcomes,” shared Endowus Chairman and Chief Investment Officer, Samuel Rhee. “It’s often because they are poorly designed with payout from the capital of the savings. Our team listened to our clients and designed the Endowus Income Portfolios to meet their real-world needs for the type and amount of passive income that they want now and what they desire for their future,” he added. 

The Endowus Investment Office worked with 12 of the leading global fund managers – Aberdeen, Alliance Bernstein, Allianz, Blackrock, Columbia Threadneedle, Dimensional, Fidelity, First Sentier, JP Morgan, Neuberger Berman, PIMCO and Schroders – which are experts in income and dividend investing, and carefully curated and optimised portfolios of best-in-class funds to build the multi-manager Income Portfolios for each life stage. With a multi-asset approach, the fixed income allocations, while globally diversified in nature, are also all hedged to the Singapore dollar to minimise currency risk. 

Endowus CEO, Gregory Van, said, “The Endowus Income Portfolios arose from consistent feedback from our clients to bring our expertise and effortless digital experience to build a differentiated passive income solution. We stayed true to Endowus’ investing philosophy by putting together some of the best-in-class solutions from global fund managers to build these portfolios. We are thrilled to observe the keen interest from our existing clients as we saw more than S$10 million invested in a few weeks, and look forward to serving all Singapore-based investors with the public launch today."

EY Chew, an Endowus client and Head of HR at an estate management company said, "I have been looking for suitable income products that fit my lifestyle and passive income needs for some time. So I was excited to see the soft launch of the Endowus Income Portfolios, as they satisfy many of the requirements that I had in mind – stable and regular payouts, lower risk, and include globally-diversified funds." 

The three portfolios have distinct key features as described below: 

Stable Income Portfolio 

● With a current payout target of 4-5% p.a., this portfolio is suitable for more mature investors who generally prefer lower risk investments, and those looking to generate a regular and predictable payout of income or to supplement their retirement income. 

● Focuses on 100% fixed income allocation with capital preservation and lower volatility & risk as main factors of consideration with this portfolio. 

Higher Income Portfolio 

● With a current payout target of 5-6% p.a., this portfolio is suitable for working adults with heavier financial responsibilities. 

● Combines 80% higher-yielding fixed income allocation with 20% dividend-focused equity allocation. Useful to meet bigger regular expenses, while still being able to grow wealth moderately over the long term.

Future Income Portfolio 

● With a current payout target of 3-4% p.a. and higher capital appreciation potential, this portfolio is suitable for younger working adults with long-term goals. ● Combines 60% high quality fixed income allocation with 40% broadly diversified equity allocation to achieve the dual income and growth objectives; this is a balanced multi-asset portfolio that should be within the risk tolerance of younger investors who have a longer investment horizon.

The Endowus Income Portfolios add to the full suite of investment solutions offered by the digital wealth platform. This includes its two Core portfolios – Flagship, available for investment with cash savings, CPF & SRS; and the ESG Portfolios. Endowus also offers six Satellite Portfolios to complement the two Core portfolios. It also has the Cash Smart range of cash management portfolios as well as the industry’s first-in-kind Fund Smart platform, which lists over 200 of the Endowus selected best-in-class funds with more than 90% of the funds available at the lowest cost to Singapore-based investors.