My unit trust with Endowus failed to pay dividend. Should I worry?

[$ingaporean]

I think this is the point. I don't know why the U.S. bond market would be of specific interest to most residents of Singapore. There are global bond index funds, for example CRPA.

Global bonds are made up of USA bonds predominantly right? So I bought this and add other bond fund like sg and Asia.

I also read somewhere active managed bond fund could have better chance to perform better than index.

 

[BBCWatcher]

Global bonds are made up of USA bonds predominantly right?

CRPA consists of ~55% "U.S." issuers.

So I bought this and add other bond fund like sg and Asia.

Well, I wouldn't buy an "Asian" bond fund either. Those tend to be U.S. dollar denominated bonds issued by entities in Asia (such as developing countries' governments) that have nothing in particular to do with the U.S. dollar. You could easily simplify this to two bond funds instead of three.

Europe (for example) has lots of very fine bond issuers.

I also read somewhere active managed bond fund could have better chance to perform better than index.

Well it'll need to because it's guaranteed to be much more expensive. (The expense ratio is substantially higher.) I wouldn't take that bet.

 

[BBCWatcher]

Thanks, because I have a sum of USD that I can potentially invest in the US bond ETFs, while waiting to enter certain stock positions.

There's some logic in that, but not with this particular PIMCO U.S. bond fund. This PIMCO fund invests in bonds that mature too far into the future for temporary U.S. dollar parking purposes, and it's Singapore dollar hedged (also bad for such purposes).

There are some Irish domiciled/London listed U.S. dollar bond index funds of the ultrashort variety, and those might be viable for parking U.S. dollars. But I don't recommend you try to time markets, which is what sidelining U.S. dollars inherently means (almost always). Also bear in mind that even ultrashort bond funds can wobble in price, so you don't get a U.S. dollar principal guarantee with them.

 

[RedsYWNA]

There's some logic in that, but not with this particular PIMCO U.S. bond fund. This PIMCO fund invests in bonds that mature too far into the future for temporary U.S. dollar parking purposes, and it's Singapore dollar hedged (also bad for such purposes).

There are some Irish domiciled/London listed U.S. dollar bond index funds of the ultrashort variety, and those might be viable for parking U.S. dollars. But I don't recommend you try to time markets, which is what sidelining U.S. dollars inherently means (almost always). Also bear in mind that even ultrashort bond funds can wobble in price, so you don't get a U.S. dollar principal guarantee with them.

Thanks BBCWatcher. With the new info, I will likely park my USD in SGOV for the time being....

 

[$ingaporean]

CRPA consists of ~55% "U.S." issuers.

Well, I wouldn't buy an "Asian" bond fund either. Those tend to be U.S. dollar denominated bonds issued by entities in Asia (such as developing countries' governments) that have nothing in particular to do with the U.S. dollar. You could easily simplify this to two bond funds instead of three.

Europe (for example) has lots of very fine bond issuers.

Well it'll need to because it's guaranteed to be much more expensive. (The expense ratio is substantially higher.) I wouldn't take that bet.

or would you think instead of holding few bonds fund, this is enough?

Amundi Index Global Agg 500m Fund​

LU2420246212​

 

[s0crates]

Anyway, seems like someone else on reddit have a similar issue with the dividends and everyone there came out with their pitchforks asking threadstarter to report to MAS.

Endowus addressed it and say it's a UOB Kayhian issue. I haven't gone through the tncs to understand what is the obligation in terms of speed of handing out dividends, but I hope UOBKH hurry wake up their idea because they seems to be a liability in the value chain.

 

[sohguanh]

Anyway, seems like someone else on reddit have a similar issue with the dividends and everyone there came out with their pitchforks asking threadstarter to report to MAS.

Endowus addressed it and say it's a UOB Kayhian issue. I haven't gone through the tncs to understand what is the obligation in terms of speed of handing out dividends, but I hope UOBKH hurry wake up their idea because they seems to be a liability in the value chain.

I have already suggested earlier Endowus just merge with UOBKH lar cut down one more level of processing. Lucky I never all in on any investment platform so this delayed action don't affect me that hard. Key is in the end they must give cannot say don't give. Also delay need to be reasonable. Cannot be drag one year and then backdate for e.g

 

[s0crates]

I have already suggested earlier Endowus just merge with UOBKH lar cut down one more level of processing. Lucky I never all in on any investment platform so this delayed action don't affect me that hard. Key is in the end they must give cannot say don't give. Also delay need to be reasonable. Cannot be drag one year and then backdate for e.g

I don't think you are right with your assessment. At least the outcome is unknown. Merging doesn't necessarily mean it's faster, the problem may persist and you may get UOB Kayhian level of support and service for everything. Worst of both worlds.

It doesn't mean these new tech companies are good with service either. I heard horror stories about trust bank and Grab. Best if you have your own contact within and get insider info and assurance imo.

 

[sohguanh]

I don't think you are right with your assessment. At least the outcome is unknown. Merging doesn't necessarily mean it's faster, the problem may persist and you may get UOB Kayhian level of support and service for everything. Worst of both worlds.

It doesn't mean these new tech companies are good with service either. I heard horror stories about trust bank and Grab. Best if you have your own contact within and get insider info and assurance imo.

Merging do have impact. Most processing are done by IT systems with then manual checking randomly I would assume. If merged into one IT system then no need UOBKH IT finish then Endowus IT take over for next step processing. Now we have Endowus statement and then from UOBKH there is one so I think backend there are two separate IT systems in this whole process flow.

 

[BBCWatcher]

"Accidents happen," but IMHO this delay is getting strange. If you're sufficiently concerned about it then you could choose another broker.

 

[sohguanh]

"Accidents happen," but IMHO this delay is getting strange. If you're sufficiently concerned about it then you could choose another broker.

That is why I always are for diversification even down to broker. I understand some readers here are heavily invested in IBKR. Yes it is a global titan hard to fail but anything can happen so it would be wise to always practise diversification. Some readers may say this is repeat to death speech but every now and then incidents happen along the years that convince me it is needed to remind investors every now and then again.

 

[BBCWatcher]

It's at least quite difficult for a Singapore-based investor to have "too much" wealth held at Interactive Brokers. Typically you'd have an owner-occupied home, a bank account, some SSBs (emergency reserve), CPF dollars, and a SRS account among your assets. (Interactive Brokers doesn't support the CPF Investment Scheme or SRS.)

 

[sohguanh]

It's at least quite difficult for a Singapore-based investor to have "too much" wealth held at Interactive Brokers. Typically you'd have an owner-occupied home, a bank account, some SSBs (emergency reserve), CPF dollars, and a SRS account among your assets. (Interactive Brokers doesn't support the CPF Investment Scheme or SRS.)

In the other thread a reader share he sold his shares and got USD 200k and convert to SGD. 200k in your definition is small monies I would presume?

 

[limster]

In the other thread a reader share he sold his shares and got USD 200k and convert to SGD. 200k in your definition is small monies I would presume?

Some people need to understand the power of compounding. If you invest $1k a month in IBKR at age 25, when you reach age 60, you will have quite a lot of money. Depending on how the stock market performs it could even exceed the SIPC protection limits. (If you are on IBKR SG there is apparently NO SIPC protection)

This money is crucial to your retirement so obviously you don't want anything to happen to it
I'm a big fan of IBKR but doesn't mean I'm going to give them all my money. Thats why I also use SCB and FSMOne.
Hopefully there will be more brokers with access to LSE (and also that FSMOne will one day have LSE access) that don't charge platform/custodian fees so I can diversify further.

 

[proton_cannon]

I have already suggested earlier Endowus just merge with UOBKH lar cut down one more level of processing. Lucky I never all in on any investment platform so this delayed action don't affect me that hard. Key is in the end they must give cannot say don't give. Also delay need to be reasonable. Cannot be drag one year and then backdate for e.g

Endowus will likely stick with UOB KH still. It is so obvious that the co-founder of Endowus is someone related/married to the UOB KH family/relatives. Just google the names can find already, public information.

 

[limster]

invest in what tho? index?

anyway, isnt the sweep function with IBKR mean the SIPC insurance is x5 or up to 2.5m

1. Sweep account applies only to cash.
2. If you have $2.5m cash with IBKR USA and you pass away, your estate has to pay estate duty on the cash.
3. You only need to pay Irish estate duties on Ireland domiciled ETF, which is currently zero.

 

[s0crates]

Endowus will likely stick with UOB KH still. It is so obvious that the co-founder of Endowus is someone related/married to the UOB KH family/relatives. Just google the names can find already, public information.

Thought this is a well kept secret... But those who are from finance will know haha

 

[BBCWatcher]

In the other thread a reader share he sold his shares and got USD 200k and convert to SGD. 200k in your definition is small monies I would presume?

It depends on what it’s for. If it’s for a house or for a retirement in Singapore it’s (unfortunately) not a lot these days.

Some people need to understand the power of compounding. If you invest $1k a month in IBKR at age 25, when you reach age 60, you will have quite a lot of money. Depending on how the stock market performs it could even exceed the SIPC protection limits. (If you are on IBKR SG there is apparently NO SIPC protection)

Brokers in Singapore have no comparable coverage to the SIPC. So what are you talking about?

I wrote “SRS.” The SRS contribution limit is $15,300 per year, more than $1,000 per month. Did you just miss that? Interactive Brokers cannot do anything with SRS dollars. It cannot do anything with CPF Investment Scheme dollars. It cannot hold your Singapore Savings Bonds. Tautologically you’re going to have other asset custodians. You have to, really.

On the other hand you could actually hold a much greater fraction of total household wealth at FSMOne or Endowus (as examples) because they can handle CPFIS and SRS dollars. Are you now going to post about the over concentration perils that could actually exist in the real world with those brokers?

I'm a big fan of IBKR but doesn't mean I'm going to give them all my money.

Who said you should? Who said you can?

But you don’t have to name any specific broker-custodian in that sentence. Don’t keep all your assets with any single custodian. Simple.

 

[s0crates]

Note: I just received an email stating that dividends for my PIMCO income fund are received on 5 May. Compared to receiving it only on 13 April.

This is back to the usual "speed". Everyone ok with their dividends?

Suspect all the noise on Reddit make UOB Kayhian buck up a bit lol

 

[sohguanh]

Note: I just received an email stating that dividends for my PIMCO income fund are received on 5 May. Compared to receiving it only on 13 April.

This is back to the usual "speed". Everyone ok with their dividends?

Suspect all the noise on Reddit make UOB Kayhian buck up a bit lol

If you are using cash pimco income fund can buy from poems no quarter fee which Endowus charge. This pimco no trailer fee rebate. Just sharing.