Endowus has launched Singapore’s first satellite portfolios with institutional funds and 100% trailer fee rebates. Retail and Accredited investors can add Satellite positions in the Endowus digital wealth app. This diversified source of alpha (above market returns) is now available for Endowus app users in addition to its top-performing Core Flagship and ESG portfolios.
The six portfolios include Technology, Global Real Estate, Megatrends, China Equities, China Fixed Income, and Low-Volatility Fixed Income. According to its press release, which has not been reviewed by the Monetary Authority of Singapore, Endowus Investment Office has put the six portfolios under a rigorous quantitative and qualitative selection and portfolio optimisation process.
The funds are managed by world-class managers including AllianceBernstein, Allianz, BlackRock, Fidelity, Franklin Templeton, FSSA, Fullerton, Janus Henderson, JP Morgan, Neuberger Berman, Schroders, Thematics and UOB Asset Management.
Cost remains the single most important determinant of future returns. Being cost-efficient is a key factor in bringing successful outcomes to these portfolios. Endowus’ industry-first and ongoing commitment to 100% trailer fee rebates and no sales fees continue with these Satellite portfolios. This transparent cost structure, along with accessing much lower fund-level fees, culminates in an estimated 67% in cost savings for Endowus clients on average compared to traditional satellite investing offerings. This commitment also ensures that Endowus’ selection of funds is based solely on their track record, experience and ability to deliver on performance, rather than incentives provided by the fund managers.
About the Endowus Satellite Portfolios
| Technology | A globally diversified portfolio of funds investing in equities of the most innovative companies around the world. This takes a holistic approach to investing in “technology” — not only companies directly engaged in the tech sector but also non-tech companies that leverage technology to enhance their competitive advantage. The focus is on achieving higher expected returns with correspondingly higher volatility in line with primarily growth-focused stocks, while giving exposure to some non-listed private technology companies. |
| Global Real Estate | This portfolio provides exposure to listed global real estate, REITs and infrastructure companies. It is a curated portfolio of four funds from three different fund managers: BlackRock, Janus Handerson, and UOB Asset Management. It allows investors to easily access other major real estate markets such as the United States and Europe, as well as higher yielding Asian markets. It captures structural growth opportunities in real estate and infrastructure sectors and acts as a hedge against rising inflation |
| Megatrends | The Megatrends Portfolio opens access to a mixture of global themes benefiting from health, artificial intelligence, and environmental sustainability. Backed by strong structural trends, these themes have the potential to far outstrip broad market growth expectations. The portfolio consists of six multi-thematic and single-theme active funds from experienced thematic investing specialists such as Thematics Asset Management and AllianceBernstein. |
| China Equities | This portfolio invests opportunities across Chinese equity markets, providing high exposure to onshore equities (China A-share) as well as a healthy allocation to offshore markets — such as Hong Kong, Taiwan, and the US. It offers attractive risk-adjusted return potential riding on long-term growth opportunities in various sectors of the equity market. The portfolio consists of five actively-managed funds that aim to generate alpha from the less-efficient China markets. |
| China Fixed Income | The China Fixed Income Portfolio allows one to diversify their investments via exposure to onshore and offshore Chinacorporate and government bonds, while benefiting from the growth opportunities of each market. It allocates primarily to corporate credits issued in both the China onshore and offshore bond markets, and has a healthy exposure to sovereigns and quasi-sovereigns that have stronger credit ratings. This captures a new and unique market opportunity as China deepens its capital markets for fixed income |
| Low Volatility Fixed Income | This portfolio allows investors to add low-volatility fixed income to their portfolios through an approach that is more defensive than using traditional fixed income. It is a curated portfolio blending different investment strategies — such as unconstrained, total return & short duration fixed income funds — allowing one to gain enhanced downside protection and experience lower volatility, while still enjoying returns comparable to the broader fixed income market. This portfolio is globally diversified across countries & sectors. |