Fund Rationale: United Global Durable Equities Fund

United Global Durable Equities Fund (the "Fund")
SGD Retail Accumulation Shares (ISIN: SG9999014005)
Fund Manager Page

Endowus has selected the Fund as it offers a unique exposure to global equities, supported by a fundamentally-driven process and highly experienced team, and has successfully been delivering its investment objective of long-term total returns with a lower beta.
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Key Information

Fund Objective: Aims to seek total return consisting of capital appreciation and income over the long term by investing primarily in equity and equity related securities of companies listed and traded on stock exchanges globally.

Suitability: Investors who are seeking total return over the long term, and are comfortable with the volatility and risks of a global equity fund.

Cost:
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* Total Fund-level Fees include fund management fee of 1.75%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 19 November 2014
Share Class Inception: 5 August 2015
Benchmark: MSCI All Country World Index

Fund AUM: SGD 271.5m
Source: MorningStar as of 27 May 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:
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Sector Allocation:
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Source: MorningStar as of 30 April 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected the United Global Durable Equities Fund as it offers a unique exposure to global equities, supported by a fundamentally-driven process and highly experienced team, and has successfully been delivering its investment objective of long-term total returns with a lower beta.

We like the Fund’s storyline and its fundamentally-driven process. In the search for “durable” companies worldwide, the investment team considers a rather uncommon investable universe consisting of stable, resilient small-cap companies in traditionally disfavoured or volatile sectors, which are then further assessed for factors such as cash flow prospects and quality of management. Described by the team as a basket of “under-appreciated blue-chip companies”, the resulting portfolio is relatively concentrated with 25 to 50 holdings, with a tilt towards quality and small size and has little or no overlap to popular names in the global equity space. Given this unique investment approach, we believe that this Fund makes a good complement to a traditional global core equity play.

The Strategy is managed by the team at Wellington Asset Management and wrapped by UOB Asset Management for access to Singaporean investors. At Wellington, the Fund is run by Lead portfolio manager Daniel Pozen, who has designed and managed the strategy since inception, and Backup portfolio manager Sam Cox, as well as Gabriel Kim, specialising on the Fund’s equity research, all with more than 20 years of experience. The team leverages Wellington's extensive network of Global Industry Analysts, with over 55 analysts formally covering approximately 90% of the MSCI ACWI producing in-depth industry analysis with an average experience of 20 years. Furthermore with Wellington’s approach in running teams as individual “boutiques” within the firm, the investment team is entrusted to generate their own opinions, independent from house views, which encourages the innovative approach of the Strategy.

With the emphasis on picking fundamentally stable and resilient companies, the Fund has managed to achieve its target of 10% return per annum over a market cycle (i.e. on a 3-year rolling basis since inception), and has generated superior risk-adjusted returns over its benchmark and peers. Endowus has worked with UOB Asset Management to offer the lowest possible fees, making the Fund a good opportunity for investors who wish to gain exposure to a unique portfolio of global equities. Within a portfolio context, an Investor can utilise this Fund to mitigate the exposure to other higher beta equity sectors and benefit from the lower volatility of this Fund.

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Updated by Endowus: May 2021

** 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.