Hugh Chung, Chief Investment Advisory Officer at Endowus, went on BT’s Money Hack podcast to discuss retirement adequacy concerns in Singapore and how people can better position themselves financially in an inflationary environment. According to Endowus Wealth Insights Report 2023 , two-thirds of respondents were tackling inflation by saving more and putting money in bank accounts. However, as bank interest rates fall below inflation rates, people should stay invested in a diversified portfolio, such as the global equities and 60/40 portfolio which offer relatively consistent returns in the longer term while beating inflation.

The Business Times explains why Endowus is the platform of choice for CPFIS, solving the limitations of LRIS. As the first digital adviser for the CPFIS, Endowus has blazed a trail in Singapore by returning all retrocession fees to clients. This fee-only model has allowed the firm to successfully onboard Amundi low-cost index funds, which lowers the cost of investing and significantly improves investors’ returns over time. Samuel Rhee, Chairman and CIO of Endowus, highlights that the firm’s commitment to making institutional share class funds available on the CPFIS has allowed the business to scale, with a clear path to profitability.

In view of the increased interest rates for Central Provident Fund (CPF) Special and Medisave accounts, should one move funds to their Special Account (SA) to benefit from the higher rates? Jamie Lee, Endowus head of financial planning and editorial, advised that while the increase in SA rates to 4.01% is attractive, the transfer process is irreversible. CPF members should carefully consider the limitations of transferring their monies from their Ordinary Accounts as these funds can also be used for other purposes such as mortgage servicing and paying for education loans.

Samuel Rhee, Chairman and CIO at Endowus, and Sunny Leung, Head of ETF, Indexing & Smart Beta at Amundi went live to share more about Amundi’s new low-cost index funds, exclusively available on CPFIS through Endowus. With TERs starting from 0.05%, these are the lowest-cost index funds available in Singapore; more cost-efficient than even ETFs. Passively-managed index funds also save CPFIS members the hassle of tracking market performance, so they can live their lives to the fullest while allowing them to accumulate greater wealth over the long term.

This Mother’s Day, So Sin Ting, Endowus Chief Client Officer, shares how working children can gift their mothers financial wellness. They can make voluntary top-ups to their mother’s CPF accounts or encourage their mothers to invest their CPF funds to enjoy higher returns in line with their risk appetite. Stay-at-home mothers can also consider an income-focused investment portfolio to generate a stable source of funds to maintain purchasing power and achieve long-term wealth goals.

As inflationary pressures persist, Singaporeans are reassessing their investing goals, according to Endowus’ Wealth Insights 2023 report. Inflation remains the biggest financial concern for the majority of Singaporeans (86%). As a result, one in three respondents, particularly the millennials, are looking to invest more to build their retirement nest egg. However, new and inexperienced investors tend to invest only when they ‘feel the time is right’, which puts investors at greater risk. Endowus CEO, Gregory Van, emphasises the need for a passive, evidence-based investment approach.

More than half of Singaporeans are investing only when they feel “the time is right”, according to the Endowus Wealth Insights Report 2023. This is worrying as emotions can derail our investments when we try to time the market, leading to increased risk and volatility. Gregory Van, CEO of Endowus, highlights the importance of financial literacy and advises investors to create diversified portfolios built in alignment with specific goals and risk appetites.

The Endowus Wealth Insights Report found that inflation and the increase in the cost of goods and services remain the biggest financial concern in 2023 among respondents in Singapore and Hong Kong. As such, people are driven to try and save more money (69%) or explore new passive income opportunities (56%). Other data reported include respondents’ varying risk appetites across demographics, and their preferred sources of financial advice.

As generational wealth is shifting, Steffanie Yuen, Endowus’ Head of Hong Kong, discussed how wealth managers should cater to HNW and UNHW families by expanding their multi-generational offerings. The growing needs of the next generation of wealth have evolved beyond digital services into omnichannel experiences. Industry players must consider providing more value to end-to-end user engagements, while ensuring full transparency of their services to build trust among their clients.

Should Accredited Investors consider alternatives and private market assets? Samuel Rhee, Chairman & CIO at Endowus, highlights why balance is key. While institutions’ allocations in private assets may be as high as 25%, individual investors are encouraged to allocate lesser, between 5 - 15%, in accordance to their wealth and risk appetite. AIs should also take the necessary measures to effectively manage their liquidity. While closed-end private funds do not require capital upfront, money needs to be available when the fund is investing.

Joyce Liu, Endowus Senior Client Advisor, shared tips for young working adults and how they should approach investing and financial planning. Young individuals who leave cash in saving accounts are not effectively growing their funds amid an inflationary environment. For those with short-term goals, cash management funds would be a good solution. Instead of timing the market and chasing trends, young adults should also do the necessary research and start investing early to enjoy the benefits of compounding.

Endowus’ Wealth Insights 2023 report has shown that inflation worries continue to persist among investors in Singapore, which may prompt emotionally-led decisions about money, impeding investors’ efforts to achieve their wealth goals. Jamie Lee, Endowus’ Head of Financial Planning and Editorial, discussed how consumers can overcome the fear of inflation, diversify their investments and information sources, while keeping their emotions in check through automating the investment process on a regular cadence.