Moneyowl WiseIncome

[rabboni]

Just came across this

https://www.moneyowl.com.sg/wiseincome/
Unit trust consisting Asian equities 30% , s-reits 30%, bonds 40%

There are 3 options
1. reinvest dividend

2. 4.5% dividend, up to 4.8%
Receive payouts of 4.5% p.a.* (up to 4.8% p.a.) of your portfolio value, mainly from income (coupons, dividends) and realised capital gains as much as possible, though it may come from your capital.

3. Fixed 8% dividend
Receive 8% p.a. of your portfolio valuefrom income (coupons, dividends), realised capital gains, and partially from your capital

Don’t quite understand point 2 and 3- the payout may come from my capital -meaning over time my capital May go to zero coz I get it as a payout?
Like if dividend 4%, they have to take 4% from my capital to give me 8%?

 

[soneat]

Just came across this

https://www.moneyowl.com.sg/wiseincome/
Unit trust consisting Asian equities 30% , s-reits 30%, bonds 40%

There are 3 options
1. reinvest dividend

2. 4.5% dividend, up to 4.8%
Receive payouts of 4.5% p.a.* (up to 4.8% p.a.) of your portfolio value, mainly from income (coupons, dividends) and realised capital gains as much as possible, though it may come from your capital.

3. Fixed 8% dividend
Receive 8% p.a. of your portfolio valuefrom income (coupons, dividends), realised capital gains, and partially from your capital

Don’t quite understand point 2 and 3- the payout may come from my capital -meaning over time my capital May go to zero coz I get it as a payout?
Like if dividend 4%, they have to take 4% from my capital to give me 8%?

Took a quick glance at this. In essence, this portfolio is projected to yield appx 5% pa.
Option (1) - Everything reinvested.
Option (2) - Most of the dividends are reinvested. As such the portfolio will grow slower (almost flat)
Option (3) - It will be a drawdown on the capital.

 

[Utonian]

Just came across this

https://www.moneyowl.com.sg/wiseincome/
Unit trust consisting Asian equities 30% , s-reits 30%, bonds 40%

There are 3 options
1. reinvest dividend

2. 4.5% dividend, up to 4.8%
Receive payouts of 4.5% p.a.* (up to 4.8% p.a.) of your portfolio value, mainly from income (coupons, dividends) and realised capital gains as much as possible, though it may come from your capital.

3. Fixed 8% dividend
Receive 8% p.a. of your portfolio valuefrom income (coupons, dividends), realised capital gains, and partially from your capital

Don’t quite understand point 2 and 3- the payout may come from my capital -meaning over time my capital May go to zero coz I get it as a payout?
Like if dividend 4%, they have to take 4% from my capital to give me 8%?

Point 2 and 3 i think you are correct. If the fund capital appreciation and dividend received cannot cover the dividend payout, they will liquidate assets to pay you dividend. Meaning the fund might have less asset over time. As long as there are assets, your holdings will not become 0.

say initial price is $1, you buy $10,000, giving you 10,000 units. if no capital gain and no dividend generated but give you 8%, the price will drop by slightly more than 8% (after accounting for the fund expense and fees). so after 1 yr, all things constant the price will drop to <$0.92. if you sell at that point, you will get back approxi. <$9,200

 

[RouK3ziLa]

This can be interesting for old people who want to see steady numbers coming in .. but when a bear market .. everything also goes ..

 

[Prof. Utonium]

8% looks very enticing until you read into the Highlights and Prospectus.

Prospectus page 193:

Classes R and R1: Distributing Class. Our current intention is to declare distribution out of the income and/or capital of FMWI. The intention is to declare distribution out of income as much as possible and to retain discretion to distribute out of capital as deemed appropriate by us

Although Classes R and R1 may make distribution out of income and/or capital, the potential distribution out of capital for Class R1 is expected to be more substantial than Class R due to Class R1’s fixed and higher payout rate. Over time, the Net Asset Value of these Classes may drop to a certain threshold as set out in the Deed where it is no longer feasible to maintain these Classes. In such a scenario, we have the absolute discretion to terminate any of these Classes in accordance with the Deed.

 

[RouK3ziLa]

8% looks very enticing until you read into the Highlights and Prospectus.

Prospectus page 193:

meaning will sell the under laying holding in event cannot cover the 8%? thats very likely also what ..

 

[Prof. Utonium]

meaning will sell the under laying holding in event cannot cover the 8%? thats very likely also what ..

Yes. very likely hence not enticing after reading through the prospectus.

From summary, the fund seems to 60/40. 60% equities split into SReits and global stocks. 38% bond split between asian and US/sg govt securities. 2% cash.

Unless the FM is very good and able to consistently hit 9% (1% cost), most likely will use part of the capital to redistribute at 8% PA.

 

[gold_eagle36]

They seem to be investing in other sub funds. Does it mean you will be charged indirectly management fee for those funds on top of the 0.4% for this fund?

Anyone can help interprete.

 

[iceblendedchoc]

what are the expense and charges?

 

[RouK3ziLa]

They seem to be investing in other sub funds. Does it mean you will be charged indirectly management fee for those funds on top of the 0.4% for this fund?

Anyone can help interprete.

You are going to be charged around 1% ... wrap fee and management fee.

 

[Sauzan]

Anyone invested in this? The 4.5% looks interesting.

 

[limster]

You are going to be charged around 1% ... wrap fee and management fee.

Like I mentioned in another thread, close to 1% total management + wrap is rather high for a fund that has no track record. If I am going to pay 1% in fees, I might as well pick something that has a proven track record.

Lionglobal Allseasons fund is 0.48% TER. Despite it being linked to OCBC, OCBC is happy to allow no- wrap/platform fee platforms like Poems sell the fund.

On the other hand this fund is 'exclusive' to moneyowl and you get the privilege of paying their wrap fee.

If the fund is so good, it should be offered on other platforms with no wrap/platform fee to increase its AUM.

 

[s0crates]

Like I mentioned in another thread, close to 1% total management + wrap is rather high for a fund that has no track record. If I am going to pay 1% in fees, I might as well pick something that has a proven track record.

Lionglobal Allseasons fund is 0.48% TER. Despite it being linked to OCBC, OCBC is happy to allow no- wrap/platform fee platforms like Poems sell the fund.

On the other hand this fund is 'exclusive' to moneyowl and you get the privilege of paying their wrap fee.

If the fund is so good, it should be offered on other platforms with no wrap/platform fee to increase its AUM.

Actually I believe there is an agreement between Moneyowl and Fullerton where moneyowl is doing the marketing, client hand holding and also exclusive distribution of the Fullerton fund (not supposed to sell other income fund), and in return Fullerton will not distribute it to other channels.

The whole free no wrap fee/platform fee thing is not very transparent. It's just trailer fees payment haha.

 

[endlssorrow]

What’s is first $10,000 no fees charges
But then got advisory fees?

the system auto buy sell is so called advisory?

 

[demoforce1]

Does anyone have option 2? how is the performance so far?

2. 4.5% dividend, up to 4.8%
Receive payouts of 4.5% p.a.* (up to 4.8% p.a.) of your portfolio value, mainly from income (coupons, dividends) and realised capital gains as much as possible, though it may come from your capital.

 

[BBCWatcher]

Why do you need to pay ~1%/year for someone to give you your own money back, if that's what you want? Just shove money into ISAC (for example) and take a regular annual distribution of 7% (for example) if that's what you want to do. That'll cost just slightly over 0.20%/year, or about 80% less than paying MoneyOwl (NTUC).

This product is mystifying.

 

[BBCWatcher]

Imagine a bank that says, "Have I got a great product for you! It's a savings account, but I'm going to deliver $500 in cash per month to your house. And I'll charge you 5 times as much for this service compared to an account that doesn't automatically distribute. Sign here!"

"But I can go to the ATM downstairs any time I want. And actually I don't even have to do that. A few clicks or taps and I have any distribution I want."

"Yes, you can, but imagine the convenience! And if your balance is $500,000 this valuable service only costs $3,900 per year extra."

What would be your reaction to this offer? What should it be?

 

[sohguanh]

Have been with FSM unit trust for 20+ years. Alot of ppl have said about dividend paying fund. The price don't move much due to the mandate to take assets (assume FM lousy) sell pay dividends.

The few successful dividend paying fund that got price moving uses a few strategies.
1. CPF invest will be dividend reinvested automatically
2. Cash invest give investor choice take monies or reinvest
3. Declare lesser dividend and frequency to quarterly instead of monthly
Guess what such fund actually still can match or beat the index! They are rare but not extinct just need to search harder.

 

[maumu]

for someone with 20 so years to retirement.. is this product suitable for SRS (top up every year and forget)? thinking of option 1... reinvest and let it accumulate.

 

[BBCWatcher]

for someone with 20 so years to retirement.. is this product suitable for SRS (top up every year and forget)? thinking of option 1... reinvest and let it accumulate.

No.