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Endowus launches six new Satellite Portfolios in partnership with leading global fund managers

Nov 2021

Endowus has launched Singapore’s first satellite portfolios with institutional funds and 100% trailer fee rebates. The professionally designed and curated portfolios allow Retail and Accredited investors to add Satellite positions in the industry-leading Endowus digital wealth app, with the goal of providing diversified sources of alpha (above market returns) for Endowus app users in addition to its top-performing Core Flagship and ESG portfolios. 

The six portfolios, Technology, Global Real Estate, Megatrends, China Equities, China Fixed Income, and Low-Volatility Fixed Income, were prioritised in response to strong customer demand for optimised exposure to these select market opportunities and more will follow in the coming months.

Each of these portfolios have gone through a rigorous quantitative and qualitative selection and portfolio optimisation process by the Endowus Investment Office. The team’s institutional screening process has identified best-in-class funds to build diversified portfolios most suitable for Singapore-based investors. Many of these funds were previously not available in Singapore, but were launched with Endowus to build these sophisticated Satellite portfolios. 

"We are excited to launch the new Satellite portfolios that are professionally managed and optimised by Endowus in response to our clients’ needs. We worked closely with the leading global managers to bring best-in-class funds to build these popular satellite portfolios. They stand head and shoulders above other offerings in the market in terms of institutional sophistication and its diversified, optimised design. It perfectly complements our Core portfolios in allowing some active tilts to personal investment preferences to achieve better return,'' says Samuel Rhee, Chief Investment Officer of Endowus.

The Endowus Satellite Portfolios will feature funds managed by many award-winning world class managers such as AllianceBernstein, Allianz, BlackRock, Fidelity, Franklin Templeton, FSSA, Fullerton, Janus Henderson, JP Morgan, Neuberger Berman, Schroders, Thematics, UOB Asset Management. 

"Traditional financial advisors have long been incentivised by fund managers to sell their products. This may result in advisors recommending higher cost products for their own benefit, rather than choosing what is best for their clients’ profile and needs. As we offer new and exciting investment opportunities, it is important that we continue to do so in an unbiased manner—and in areas that complement our investors’ needs,” says Endowus Chief Executive Officer, Gregory Van.

Cost remains the single most important determinant of future returns, so being cost-efficient is a key factor in bringing successful outcomes to these portfolios. Endowus’ industry-first and ongoing commitment to 100% trailer fee rebates and no sales fees continues with these Satellite portfolios. This transparent cost structure, along with accessing much lower fund-level fees, culminates in an estimated 67% in cost savings for Endowus clients on average compared to traditional satellite investing offerings. This commitment also ensures that Endowus’ selection of funds is based solely on their track record, experience and ability to deliver on performance, rather than incentives provided by the fund managers. 

About the Endowus Satellite Portfolios

Many investors are interested in the growth potential of a specific market or sector, and seek a convenient way to invest directly in their favored region, sector or theme — and at low cost. The Endowus Satellite Portfolios allow investors to do just this while engaging only the specific funds and fund managers that have passed a stringent screening process. Investors can supplement their existing Core portfolios or take a concentrated position in a way that reflects their personal investment views while capitalising on key opportunities as they arise through the following satellite portfolios. 

Technology:  A globally diversified portfolio of funds investing in equities of the most innovative companies around the world. This takes a holistic approach to investing in "technology" — not only companies directly engaged in the tech sector, but also non-tech companies that leverage technology to enhance their competitive advantage. The focus is on achieving higher expected returns with correspondingly higher volatility in line with primarily growth-focused stocks, while giving exposure to some non-listed private technology companies.

Global Real Estate:  This portfolio provides exposure to listed global real estate, REITs and infrastructure companies. It is a curated portfolio of four funds from three different fund managers: BlackRock, Janus Handerson, and UOB Asset Management. It allows investors to easily access other major real estate markets such as the United States and Europe, as well as higher yielding Asian markets. It captures structural growth opportunities in real estate and infrastructure sectors and acts as a hedge against rising inflation.

Megatrends:  The Megatrends Portfolio opens access to a mixture of global themes benefiting from health, artificial intelligence, and environmental sustainability. Backed by strong structural trends, these themes have the potential to far outstrip broad market growth expectations. The portfolio consists of six multi-thematic and single-theme active funds from experienced thematic investing specialists such as Thematics Asset Management and AllianceBernstein. 

China Equities:  This portfolio invests opportunities across Chinese equity markets, providing high exposure to onshore equities (China A-share) as well as a healthy allocation to offshore markets — such as Hong Kong, Taiwan, and the US. It offers attractive risk-adjusted return potential riding on long-term growth opportunities in various sectors of the equity market. The portfolio consists of five actively-managed funds that aim to generate alpha from the less-efficient China markets.

China Fixed Income:  The China Fixed Income Portfolio allows one to diversify their investments via exposure to onshore and offshore China corporate and government bonds, while benefiting from the growth opportunities of each market. It allocates primarily to corporate credits issued in both the China onshore and offshore bond markets, and has a healthy exposure to sovereigns and quasi-sovereigns that have stronger credit ratings. This captures a new and unique market opportunity as China deepens its capital markets for fixed income.

Low Volatility Fixed Income:  This portfolio allows investors to add low-volatility fixed income to their portfolios through an approach that is more defensive than using traditional fixed income. It is a curated portfolio blending different investment strategies — such as unconstrained, total return & short duration fixed income funds — allowing one to gain enhanced downside protection and experience lower volatility, while still enjoying returns comparable to the broader fixed income market. This portfolio is globally diversified across countries & sectors.

Satellite investing on the Endowus app