What are the risks of investing in Cash Smart?

Cash Smart is a diversified investment portfolio of cash, money market, and short duration fixed income funds. As an investment product, Cash Smart is not capital-guaranteed and it may experience periods of negative returns. The return potential of each Cash Smart portfolio is positively correlated to the risk profile of the underlying investments. Read more here for the differences between each Cash Smart portfolio.

Difference between Cash Smart and a bank deposit

When you make a deposit at the Deposit Insurance (DI) member bank in Singapore Dollars (SGD), it is insured by the Singapore Deposit Insurance Corporation Limited (SDIC) for up to S$75,000 in the event that the bank fails. As Cash Smart is an investment product and not a bank deposit, it is not insured by the SDIC.

Safeguarding your financial interests

Cash Smart invests in funds. The funds have their assets ring-fenced by trustees and custodians (in the case of Cash Smart, the trustees and custodians are HSBC for Fullerton and Lion Global, and State Street for UOB Asset Management). You, as the investor, have a custodian as well (in our case this is UOB Kay Hian, Singapore’s largest broker). 

With the custodians in place, Endowus (your financial advisor), as well as Fullerton, Lion Global and UOB Asset Management (the fund managers) never touch your money. The fund managers have strict guidelines for what the fund can and cannot invest in and a team dedicated to working your money harder within their guidelines, executed through the custodians. 

The funds have a diverse set of underlying holdings and counterparties such as bank deposits, fixed deposits, government and corporate debt securities. The funds also have a diverse investor base ranging from financial institutions, sovereign wealth funds, corporations, charities, to individual investors.