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Fund Rationale: Lion Global Infinity US 500 Stock Index Fund

Lion Global Infinity US 500 Stock Index Fund
SGD Retail Accumulation Shares (ISIN: SG9999003289)

Introductory information
The LionGlobal Infinity U.S. 500 Stock Index Fund (the “Fund”) aims for medium to long-term capital appreciation by following the performance of the US stock market - the Fund is designed to track the performance of the Standard & Poor’s (”S&P”) 500 Index by investing in all, or a representative sample, of the securities that make up the index, holding each stock in approximate proportion to its weighting in the index. The Fund is a feeder fund in the Vanguard® U.S. 500 Stock Index Fund, a Sub-Fund of the Vanguard® Investment Series PLC, and is suitable for investors who seek capital growth over the medium to long term, and are comfortable with investing in an index fund.

Characteristics
The Vanguard® U.S. 500 Stock Index Fund employs a "passive management"—or indexing—investment strategy The S&P 500 Index is a widely recognised benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. It represents approximately 80~85% of the available US stock market capitalization.

The Fund provides investors access to an index fund with a low investment amount and at a lower cost. An index fund such as this Fund has operating expenses, and, therefore, while expected to follow its target index as closely as possible, will not be able to match the performance exactly.
 

Background information and cost
The Fund has an underlying fund management fee of 47.5bps per annum (0.475% p.a.) and total expense ratio (“TER”) of 67.5bps per annum (0.675% p.a.). Endowus has arranged for the FMC to rebate the trailer fees which Endowus will refund 100% back to the client to achieve a lower net management fee of 20bps (0.20% p.a.) and net TER of 40bps (0.40% p.a.). Endowus does not charge a preliminary sales charge or any other  fees, other than the all-in advice fee. The Fund is on the CPF Investment Scheme - List A Fund, and is included under the CPF Investment Scheme for Ordinary Account. It has been classified by the CPF Board under the risk classification of “Higher Risk / Broadly Diversified.” 

Lion Global Investors, a member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group, is one of the largest asset management companies in Southeast Asia, with group assets under management of S$61.0 billions at 30 June 2020.

Selection criteria for Endowus
Endowus has worked hard with Vanguard and LionGlobal to bring the first passive fund into the CPFIS included Fund List A. For CPFIS it is exclusively available to Endowus clients due to our rebate bringing the TER within the CPF guidelines. The fund allows for more stable returns in large and mid-sized US equities which represent 85% of the US total stock market.  The fund has annualised returns of 9.9% in the past 5 years and 12.2% in the past 10 years as of July 2020. The S&P 500 and the Fund that tracks the index, have outperformed the MSCI All Country World Index and the Developed Market MSCI World Index in 9 of the past 12 years. It is the best-in-class US/developed market equity fund currently available in the CPFIS included list.

Updated by Endowus: 25 Sept 2020

** Disclaimer
Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.

The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.