AutoWealth to offer digital portfolio service for CPF Investment Scheme
The firm will roll out four portfolios, intended to simplify decision making for members
ROBO advisory AutoWealth has become the second digital adviser for the CPF Investment Scheme, after Endowus.
The firm is launching four portfolios designed to help CPF members achieve returns in excess of the 2.5 per cent rate provided by the Ordinary Account. Access to the platform in the CPFIS will be in phases, starting with AutoWealth’s existing retail clients and base of corporate employees. It is expected to open to the wider public in the second quarter.
Rolling out in phases is intended to help “uphold service quality”, said AutoWealth in a statement.
Noel Lee, chief operating officer of AutoWealth, said: “Navigating the various options and products under the CPFIS may be daunting to some, including members who have the financial capacity to take on measured risk for higher returns. But CPF savings aren’t just figures on a screen. They represent your time, freedom and future... We’re offering an additional option for Singaporeans to invest their CPF savings easily.”
Founded in 2015, AutoWealth is an institutional-grade robo advisory firm. offering automated investment plans and various portfolios for efficient, diversified investments. For more than six years, its investment engine has underpinned the retirement plans of employees of Fortune 500 companies, such as Google and Unilever.
The firm recently secured funding from notable investors, including the family office of Razer co-founder Tan Min Liang, SGInnovate and Acore Capital, to accelerate the roll-out of its CPF capabilities.
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The four portfolios – ranging from an aggressive allocation of 100 per cent equities to a more conservative profile (40 per cent stocks/60 per cent bonds) – are intended to simplify decision making for CPF members. Operating digitally also helps to cut costs as it reduces reliance on traditional intermediaries.
AutoWealth will rebate trail fees to investors, which will significantly reduce the annual management fees of underlying funds, compared to retail funds. The portfolios’ annual administration fee is 0.28 per cent.
“CPF is the bedrock of Singapore’s social security system, helping Singaporeans build a strong foundation for retirement. Our solution is for those who have the financial capacity for measured risk. We give them a better way forward,” Lee said.
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