Endowus Cash Smart

[FinalDestiny...]

Endowus has released their cash management product today, Endowus Cash Smart.

Existing competitors from fellow robo-advisors are Stashaway Simple and Moneyowl WiseSaver.

General features

Projected Yield

Cost

Additional Fund info
Fullerton SGD Cash Fund - Class A
Lion Global SGD Enhanced Liquidity Fund - Class I (Institutional)
UOB AM United SGD Fund

Historical Returns of Cash Smart and its underlying funds

* Since inception date of Nov 2018 for LionGlobal Enhanced Liquidity Fund. **Note: based on daily NAV numbers of underlying funds from Bloomberg as of 26 June 2020. Does not include trailer rebates.

Comparison of Projected Gross and Net Yield among competitors and the underlying fund

Gross yield is everything before expenses. Net yield is everything after expenses.

 

[assiak71]

Fullerton SGD Cash Fund - Class A

and

UOB AM United SGD Fund

are retail class right? I wonder why they didnt manage to get institutional class.

 

[FinalDestiny...]

Fullerton SGD Cash Fund - Class A

and

UOB AM United SGD Fund

are retail class right? I wonder why they didnt manage to get institutional class.

Fullerton SGD Cash Fund has either Class A or B based on the fund info sheet.

UOB AM United SGD Fund has Class A, B and S.
I was curious about S class and I got this definition from Morningstar:
"S shares are former no-load share classes that have been closed to new investors. If an investor would like to buy into one of those
funds for the first time, they will have to go through a broker and opt for the A, B, or C share class."

Class A generally has the lowest expense ratios among A/B/C.

 

[limster]

its excellent for SRS... because SRS I make purchases once or twice a year only, so rest of the time there is often some money sitting around, whether unused contribution or dividends.

 

[assiak71]

Fullerton SGD Cash Fund has either Class A or B based on the fund info sheet.

UOB AM United SGD Fund has Class A, B and S.
I was curious about S class and I got this definition from Morningstar:
"S shares are former no-load share classes that have been closed to new investors. If an investor would like to buy into one of those
funds for the first time, they will have to go through a broker and opt for the A, B, or C share class."

Class A generally has the lowest expense ratios among A/B/C.

I did not check if there are institutional class for those 2 funds.

Have you confirmed that what is in endowus cash smart is the lowest fee class already? Thx

 

[Hwsemb]

Any existing Endowus user maintaining less than $10k?

Although the FAQ mentioned "The initial minimum investment amount is $10,000 and the minimum account size to be maintained is S$10,000."

But some FAQs suggest maintenance need not be $10k:-
"Under no circumstances will you be locked into an account with Endowus for any period of time. You can close an account or withdraw part of your assets at any time."

"The minimum initial investment on the Endowus platform is S$10,000. A single transaction has a minimum of S$100. There is no minimum balance that must be maintained in Cash Smart."

"You can redeem your entire portfolio anytime. If you request to redeem 80% or more of your investment value, we will also execute a full redemption of your portfolio."

 

[Eternit]

It's not insured under SDIC right? So if I put my money in their cash management, there's a possibility of losing or decaying of the initial deposit?

 

[FinalDestiny...]

Any existing Endowus user maintaining less than $10k?

Although the FAQ mentioned "The initial minimum investment amount is $10,000 and the minimum account size to be maintained is S$10,000."

But some FAQs suggest maintenance need not be $10k:-
"Under no circumstances will you be locked into an account with Endowus for any period of time. You can close an account or withdraw part of your assets at any time."

"The minimum initial investment on the Endowus platform is S$10,000. A single transaction has a minimum of S$100. There is no minimum balance that must be maintained in Cash Smart."

"You can redeem your entire portfolio anytime. If you request to redeem 80% or more of your investment value, we will also execute a full redemption of your portfolio."

The minimum investment is $10000 across all forms of investments in Endowus. If you don’t have any other investments with Endowus, Cash Smart will require a $10k minimum. If say you have >$10k invested in Cash and CPF investments, the minimum for Cash Smart will be $100.

It's not insured under SDIC right? So if I put my money in their cash management, there's a possibility of losing or decaying of the initial deposit?

Nope, it is not insured under SDIC as it is not a fixed deposit.



Posted from PCWX using iPhone12,5

 

[zoneguard]

If DIY Fullerton SGD Cash Fund A, no need to maintain 10K AUM with Endowus. Distributors' usual initial amt is 1K.

The projected return for Cash Smart Core is not fantastically higher compared to Fullerton SGD Cash Fund. The product's approach smells a lot like the recent change for their equity funds where they combined a few equity funds together to improve returns/volatility. Now they combined a few MMF/short term bond funds.

I personally prefer KISS. So I will DIY instead.

 

[FinalDestiny...]

If DIY Fullerton SGD Cash Fund A, no need to maintain 10K AUM with Endowus. Distributors' usual initial amt is 1K.

The projected return for Cash Smart Core is not fantastically higher compared to Fullerton SGD Cash Fund. The product's approach smells a lot like the recent change for their equity funds where they combined a few equity funds together to improve returns/volatility. Now they combined a few MMF/short term bond funds.

I personally prefer KISS. So I will DIY instead.

There appears to be a reasonable amount of difference, based on the slides provided in the webinar :

Endowus's position is that combining 2 funds reduces volatility, but this is up to one's interpretation

 

[sylves]

With current pathetic bank interest rate, this serve as a good option to park your cash reserve.

But one thing i am curious abt. EndowUS focus is to bring down cost/fees to the consumers. However, i saw that their overall fees is higher than Stashaway simple.

EndowUS Cash smart Enhanced - Net fee: 0.325%, Yield: 2.2%
Stashaway Simple - Net Fee: 0.205%, Yield: 1.9%

Even though the net fee is higher for endowus , i still opt to go for it since the yield is still better than stashaway simple.

 

[hwmook]

With current pathetic bank interest rate, this serve as a good option to park your cash reserve.

But one thing i am curious abt. EndowUS focus is to bring down cost/fees to the consumers. However, i saw that their overall fees is higher than Stashaway simple.

EndowUS Cash smart Enhanced - Net fee: 0.325%, Yield: 2.2%
Stashaway Simple - Net Fee: 0.205%, Yield: 1.9%

Even though the net fee is higher for endowus , i still opt to go for it since the yield is still better than stashaway simple.

Because of UOB SGD fund, this one carry higher fees but better yield.

 

[Okenba]

Because of UOB SGD fund, this one carry higher fees but better yield.

I believe UOB SGD fund is also more volatile.

 

[zoneguard]

There appears to be a reasonable amount of difference, based on the slides provided in the webinar :

Taken from Endowus's website as of 3 Jul 2020:

 

[reddevil0728]

Is it cheaper to put money into this or DIY?

 

[Eternit]

Since not insured by sdic is there a possibility that you actually lose money in this account ?

 

[s0crates]

If you only intend to do Fullerton it's the same. Because trailer fee rebates + endowus fees = 0.00%.

Is it cheaper to put money into this or DIY?

 

[s0crates]

I am actually interested to see how "transparent" Endowus is for their supposed weekly updates of the projected yield.

They have very kindly helped stashaway simple updated their yield number which was the same since November 2019, but let's see if they keep to the very transparent standards that they set in the webinar and their insights posts.

 

[reddevil0728]

Since not insured by sdic is there a possibility that you actually lose money in this account ?

its an investment, so of course there is a possibility of losing money in this account.

If you only intend to do Fullerton it's the same. Because trailer fee rebates + endowus fees = 0.00%.

what about 50/50 into fullerton and UOB AM United SGD Fund via fsmone?

 

[BlueRobin]

Since not insured by sdic is there a possibility that you actually lose money in this account ?

Here is what Endowus said about this risk.

https://endowus.com/support/9000015...singapore-deposit-insurance-corporation-(sdic)