EndowUs Roboadvisor: investing using CPF

[Suleyman]

I got an account with Endowus where I park my CPF OA funds in. Everything is going ok so far, nearly 4.8% for a 4 month old account.

However, I can't shake of the concern about the long term viability of the company. It's one thing for MAS to approve them to use client's OA funds for investment (i.e. a good indicator that they have a good business model going), at the same time the downfall of smartly does highlight the risk of having park money with such roboadvisors.

It's not any more risky than parking your money with any broker or custodian account anywhere in Singapore. MAS has strict rules that the AUM needs to be kept separate from the company's assets, so even in Smartly's case, it's not like anyone lost their money. However, because all their customer's assets are kept together in one custodian account, everyone needed to liquidate their holdings & had the option to receive as cash or transferred to Stashaway.

Otoh, with Endowus, there's the additional 'protection' that each customer's holdings are kept in personal UOB KH accounts, so in the event that Endowus folds, & you do not wish to liquidate, your holdings are still intact in your UOB KH account to do as you wish.

So, if your concern is the long term viability of the party holding onto your money, then the one you need to look at it UOB KH, not Endowus.

 

[hwmook]

I got an account with Endowus where I park my CPF OA funds in. Everything is going ok so far, nearly 4.8% for a 4 month old account.

However, I can't shake of the concern about the long term viability of the company. It's one thing for MAS to approve them to use client's OA funds for investment (i.e. a good indicator that they have a good business model going), at the same time the downfall of smartly does highlight the risk of having park money with such roboadvisors.

What is the risk? You still get back your money.

 

[grandza]

For those interested in Endowus 50% Risk very aggressive portfolio!

 

[dappermen]

For those interested in Endowus 50% Risk very aggressive portfolio!

wt is your return? since when? 01-2021? 12.8%?

 

[dappermen]

finally , i knw why Edowus is able to provide Lower Access Fees 4 single Fund smart! cos No autor-ebalancg svcs!!!!!

 

[Suleyman]

finally , i knw why Edowus is able to provide Lower Access Fees 4 single Fund smart! cos No autor-ebalancg svcs!!!!!

What is there to rebalance when there is only one fund?

 

[dappermen]

Hence able to lower access fees

The others with multifunds couldnt, but sometimes i opt not to rebalance even if it is multifunds

 

[RedsYWNA]

Support Endowus!

Haha I may even use some excess SRS to buy Infinity 500 via Endowus, since difference betw Endowus and Poems is negligible (0.03% better off via Poems).

 

[Crimsom]

Any promo for new sign ups now?

 

[CrashWire]

yes sent u a code

Is it the $20 referral code?

@Crimsom, you might want to wait for a promo like https://endowus.com/insights/invest-with-endowus-and-get-up-to-500/

Some people not only flood the forum with low quality spam, but now give bad advice just to benefit themselves.

 

[katana71]

What is there to rebalance when there is only one fund?

This is funny, but totally factual

 

[VanquishShadow]

I got an account with Endowus where I park my CPF OA funds in. Everything is going ok so far, nearly 4.8% for a 4 month old account.

However, I can't shake of the concern about the long term viability of the company. It's one thing for MAS to approve them to use client's OA funds for investment (i.e. a good indicator that they have a good business model going), at the same time the downfall of smartly does highlight the risk of having park money with such roboadvisors.

in addition to Suleyman's very good reply above, i also recommend you read this section of the article I linked below, explaining further.

https://thefipharmacist.com/smartly...n/#How_safe_are_my_assets_with_a_robo-advisor
the key thing to note is that, at no point is Endowus actually handling your money. All transactions are executed by UOBKH, under "instructions" from Endowus in a financial advisor capacity. So if anything happens to Endowus, the "instructions" may cease but your $$ is safe and sound in UOBKH under your own name.

 

[twosix]

bottomline is if u do not trust the investment company, why still invest with them?

 

[LoUsyGamER]

What happen if uobkh is being liquidated? Would the account be transferred to another "custodian"? Or allow holders to liquidate their positions?

 

[dappermen]

it will never happend to my fav bk UOB

 

[VanquishShadow]

What happen if uobkh is being liquidated? Would the account be transferred to another "custodian"? Or allow holders to liquidate their positions?

may have to ask UOBKH themselves.
but frankly, sort of like asking what happens if CDP/SGX gets liquated...

 

[twosix]

do ur homework. if uobkh folds, can say goodbye to sgx already...

 

[LoUsyGamER]

do ur homework. if uobkh folds, can say goodbye to sgx already...

Why? There are other brokers. How it relates to sgx fold?

 

[twosix]

that means sgx and sg govt failed to regulate their partners. if such a situation happened, sgx is probably done for. u need to know sg is highly regulated, sg govt will never allow such things to happen. and uobkh is part of uob, iocbc is part of ocbc. what do u think?

 

[LoUsyGamER]

that means sgx and sg govt failed to regulate their partners. if such a situation happened, sgx is probably done for. u need to know sg is highly regulated, sg govt will never allow such things to happen. and uobkh is part of uob, iocbc is part of ocbc. what do u think?

Erm. Thanks. I will check with endowus and uob on their arrangements.

Thanks.