Asia Wealthtech

S’pore Digital Advisor Endowus Expands CPF Investment Scheme Offerings with Exclusive Global Index Fund

  • Vanguard sub-managed Lion Global Infinity Fund enhances CPF investment options with lower fees and greater diversification

 Endowus.com, one of Singapore’s leading MAS-licensed advisor and the first and only digital advisor for CPF, said today that Central Provident Fund (CPF) members will now have a new option to invest their CPF into a fund that is managed by one of the world’s largest passive fund managers[1].

The newly included fund – Infinity Global Stock Index Fund– is available immediately and is sub-managed by The Vanguard Group, a pioneer in passive index investing and mutual funds, and the world’s second-largest provider of exchange-traded funds.

The Fund is wrapped and included in CPFIS by local fund manager Lion Global Investor, a member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group.

CPF members will enjoy two key benefits from the availability of this Fund:

  • It is the first time CPF members can invest in a passive index fund for developed markets with CPF savings. This means that one has a low-cost option of having a

diversified passive indexed investment in global developed equities. This now become the most diversified fund included under the CPF Investment Scheme (CPFIS)[2].

  • Through Endowus’ advised portfolios, which now includes this passive fund, clients can access the lowest cost, globally diversified portfolio with their CPF savings at optimised levels of risk. They will enjoy the exclusive access and the benefit of Endowus’ low flat fee of 0.40% per annum, with no sales charges or transaction fees, and 100% rebates on trailer fees for all CPF investments through Endowus. (See https://endowus.com/pricing)

Endowus Chief Executive Officer Gregory Van said: “The core philosophy of Endowus lies in the belief that technology and the best of finance can be integrated to solve the wealth challenges of our generation.

“Technology can deliver personalised, systematic, and institutional quality advice at scale and low cost. Alongside tapping the experience of the leading global fund managers, Endowus delivers a superior investment experience, with exclusive access to more suitable, lower cost, and higher quality products for everyone,” he said.

As an industry first, Endowus recently disbursed 100% of the trailer fees (sales commissions) it received from fund managers to its client CPF OA accounts.

“We champion the fight for fair fees, rebating all trailer fees to clients, charging no sales fees or transaction fees. We are strictly only paid by our clients so we can be unbiased in our pursuit to get the best products to our clients, rather than the products that pay us the most. These trailer fees can be shockingly high, and typically range from 30% to 70% of fund total expense ratios,” he added.

 

Endowus Chairman and Chief Investment Officer Samuel Rhee said: “Endowus has worked hard to bring passive investing to all CPF members by including these two best-in-class funds into CPFIS. We want to thank our partners Lion Global Investors and Vanguard for working tirelessly to achieve the lowest cost achievable exclusively for CPF members. 

“These two funds now make up the bulk of our equities allocation and at these extremely low costs, are the cheapest and most efficient way to access the S&P 500 and Global Equities in Singapore dollars. Research has proven that a lower cost of funds is the single most important factor in investment success. 

“Endowus began with the purpose of improving the chances of investment success and in meeting the biggest generational challenge of our times, which is retirement. We believe all CPF members benefit from investing their CPF-OA into these low-cost passive solutions to achieve better outcomes and secure their financial future,” he said.

With the inclusion of this new fund into the CPF portfolio, Endowus’ recommended portfolio’s equities exposure will largely be made up of low cost passive funds with the two Vanguard managed passive funds taking up 70% of the allocation. Endowus is agnostic to product and as a fee-only independent advisor, will continue to focus on selecting and introducing the best in class products most suitable for CPF members.

These are the first two passive funds made available to CPFIS investors in their Ordinary Accounts. Endowus’ overarching goal is to help to improve advice, reduce costs. and hence improve returns for all.

 

For more information on the Infinity Global Stock Index Fund, go to https://bit.ly/2VygIJC.

[1]A “passive” fund is an investment that tracks a market index, or a specific market segment. Unlike an active fund, passive funds are cheaper to invest in than active funds, which require the fund manager to spend time researching and analysing opportunities to invest in.

[2]The next most diversified holding is the Infinity US Equities S&P 500 Fund, which was introduced by Endowus to CPF members in late 2019. Both these two funds are the only two passive low-cost index funds currently available on CPFIS and are exclusively available to CPF members via Endowus services.

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