Endowus launches income portfolios in response to customer demand
Singapore
ROBO adviser Endowus has launched the Endowus Income Portfolios, a multi-manager series designed to pay a passive income.
The portfolios have already attracted around S$10 million in investments, less than a month since its soft launch at end-December.
Put together in response to customer requests, the portfolios are designed to match Singapore investors' life stages to their different needs, risk appetites and goals.
The target payouts range between 4 and 6 per cent a year. The portfolios are built on an all-weather approach, diversified across geography and best-in-class managers. As with all Endowus offerings, there are no sales or redemption charges. All trail fees are rebated.
Endowus chairman and chief investment officer Samuel Rhee said: "Many clients have been actively seeking a passive income solution that is better than the vast array of options in the market today. These options look too similar, are often too costly and do not lead to good outcomes.
"It's because they are poorly designed with high fees to benefit financial advisers, insurance companies or banks rather than the investors themselves, or pay out from the capital of the savings.''
The Endowus Investment Office worked with 12 fund managers, including Abrdn, Allianz and BlackRock, and optimised portfolios of best-in-class funds for each of 3 life stages. Here are highlights of the portfolios:
The Stable Income Portfolio is suitable for more mature investors who seek lower-risk investments and a predictable income payout. Its annual payout target is 4-5 per cent, and it is 100 per cent invested in fixed income.
The Higher Income Portfolio is positioned for working adults with heavier financial responsibilities. Its payout target is 5-6 per cent. It is 80 per cent invested in fixed income and the balance in equities.
The Future Income Portfolio is for younger investors who have a longer horizon. It is 60 per cent invested in fixed income and 40 per cent equities. Its target payout is 3-4 per cent and offers higher capital appreciation potential.
