Fund Rationale: Lion Global Infinity Global Stock Index Fund

Lion Global Infinity Global Stock Index Fund
SGD Retail Accumulation Shares (ISIN: SG9999003321)

Fund Manager Page

Introductory information
The Lion Global Infinity Global Stock Index Fund (the “Fund”) aims for medium to long-term capital appreciation by following the performance of the developed world stock markets through investment as a feeder fund in the Vanguard® Global Stock Index Fund, a Sub-Fund of the Vanguard® Investment Series PLC. The Vanguard® Global Stock Index Fund employs a "passive management" — or indexing — investment strategy designed to track the performance of the MSCI World 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 MSCI World Index captures large and mid-cap representation across 23 Developed Markets countries, and the index covers approximately 85% of the free float-adjusted market capitalisation in each country. It is the broadest developed market index fund product available.

The Fund is a Singapore-constituted open-ended unit trust, and its inception date was 31 May 2000. The Fund has assets under management of SGD 58.7m as of March 2020.

 

Characteristics
The Fund provides access to a passive fund with a low startup amount and at a lower ongoing 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 as a result of the costs. The Price/Earnings ratio is 17.9x, the Price/Book ratio is 2.2x and a dividend yield of 2.5% in line with the MSCI World Index.

 

Background information and cost
The Fund has an underlying fund management fee of 65.5bps per annum (0.655% p.a.) and a total expense ratio ("TER") of 73.5bps per annum (0.735% p.a.). Endowus have arranged for Lion Global Investors to rebate the trailer fees of 27.5bps per annum (0.275% p.a.) which Endowus will refund 100% back to the client to achieve a lower net management fee of 38bps and a net TER ratio of 46bps. Endowus do 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, member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group, are one of the largest asset management companies in Southeast Asia, with group assets under management of SGD 61.0bn as of 30 June 2020.

 

Selection criteria for Endowus
Endowus have worked hard with Vanguard and Lion Global to bring the only passive equities funds into the CPFIS-included Fund List A. This is the second passive low-cost index fund made available on CPFIS, and it is exclusively available to Endowus clients due to our industry-first 100% rebate of trailer fees, which brings the TER within the CPF guidelines. The Fund allows for broad exposure in large and mid-cap companies across developed markets and is a great low cost diversified product on the CPFIS fund list and has the most number of holdings in the fund among all the funds in CPFIS. We believe wherever possible we prefer to provide clients with low-cost passive products which are tax-efficient as an Irish UCITS fund and also removes the FX cost as it is denominated in SGD. This Fund is another example of the continuous efforts made by Endowus to improve the risk-adjusted performance and cost efficiency of the portfolio.

Updated by Endowus: 30 Mar 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.