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Yesterday, Endowus launched a sign-up offer for new clients, which looks pretty unbeatable to us.
Note that the promotion’s deadline has been brought forward. Where there’s been an update, we have crossed out the original terms and added in the latest terms (to make it easy to see the difference).
Low-Down on the Promo
From now till 31 July 2021 11 June 2021, new Endowus users are eligible for $100 of rewards on their first $10,000 invested in any of their “General Investing” or “Cash Smart” portfolios.
New sign-ups who choose to invest more will be eligible for more rewards. An additional $50 of rewards will be given for every additional $5,000 invested (up to a total of $500 worth of rewards for the first $50,000 invested).
The reward will be issued in the form of a unit trust: LionGlobal All Seasons Fund (Growth). This unit trust may be sold after a 90-day min holding period and sales proceeds will be received in your cash account (even if you had made your first Endowus investment using SRS).
What’s even better is that this sign-up promo is stackable with existing referral promo codes. You can use ours to save an extra $20 on your Endowus management fees! This post is NOT SPONSORED by the way, though we do earn affiliate fees from the sign up links on this page.
Article Summary
1) What is Endowus?
2) Key terms of the promo
3) Our thoughts: It’s effectively a 1% rebate
4) LionGlobal All Seasons Fund (Growth) Fund Details
1) What is Endowus?
Endowus is a Robo-Advisor
Endowus is a digital wealth advisor platform (aka robo-advisor). They provide different investment options for individuals. For instance, there’s Endowus Cash Smart (projected to yield up to 2% per annum) for those looking to park their cash. Or Endowus General Investing which allocates your money into a portfolio of stocks and fixed income, the composition of which depends on your risk tolerance.
My own experience. I’m using Endowus to invest my CPF-OA and the experience has been positive so far. The sign-up process was seamless for me and I personally find the app’s interface very user-friendly.
Going by the independent reviews on Seedly, it would seem that many share my sentiments. It’s also good to know that Endowus has managed to snag a few awards recently, as they do have a very competent team and a strong product offering.
2) Key terms of the promo
This promotion is only valid for New Clients. “New Clients” are defined as participants who have created an account by 11 June 2021, and have made a first investment with Endowus between 7 June 2021 to 31 July 2021.
What’s the Reward?
- Reward amount: $100 of rewards on the first $10,000 invested, and an additional $50 of rewards for every additional $5,000 invested (up to a total of $500 worth of rewards for the first $50,000 invested).
- Reward item: Units of the LionGlobal All Seasons Fund (Growth).
- Reward receipt date: By 31 August 2021
How to Get It
- This promotion is only valid for New Clients. “New Clients” are defined as participants who who have created an account by 11 June 2021, and have made a first investment with Endowus between 7 June 2021 to 31 July 2021.
- Eligible investments: Only investments made in either Endowus General Investing (Core, not ESG) or Cash Smart (Core, Enhanced, or Ultra) will be eligible for the promotion.
- Eligible funding sources: Only investments made with Cash or SRS will be eligible for the promotion. CPF investments will not be considered as qualifying investments.
Note: If you have an existing Endowus account but have not made your first investment, you are still eligible for this promotion. Existing clients who have already invested with Endowus will not be eligible.
The promotion’s terms and conditions may be accessed here.
3) Our thoughts: It’s effectively a 1% rebate
That’s a lot by the way.
WE LOVE IT. It’s effectively a 1% rebate on invested capital. This is a big deal. To put it into context, most cash management accounts (e.g. fixed deposits, Singtel Dash Pet) are only offering returns of about 1% p.a. This 1% Endowus is offering is ON TOP of whatever return you’d be getting from your invested capital with them.
For example, if you invested into Endowus Cash Smart Ultra, your expected returns would be 1.8% to 2% p.a. On top of this, you’d get an extra 1% rebate in the form of LionGlobal All Seasons Fund (Growth)!
Importantly, the eligibility criteria is easy-to-meet. Honestly, it’s tough for us to find an angle where this wouldn’t make sense for a new user. (We’ve already invested so can’t enjoy the promo ourselves…. low-key wishing we had signed up later!!)
Who does it make sense for?
- If you are already thinking of setting up an Endowus account (or have set up an account but have yet to invest), this promo would be the cherry on the cake.
- For those who are more risk averse and have no immediate plans to invest, I see this promo as an incentive to try out Endowus’ Cash Management accounts to earn 1% upfront (from the reward), and another 0.8%-2.0% p.a. projected net yields from the cash management accounts.
Endowus has 3 Cash Management accounts with varying levels of risk, and are called Cash Smart Core / Enhanced / Ultra. Details of these accounts may be found in this link.
In any case, there’s nothing to lose.
At worst, if the platform isn’t to your liking, you are free to redeem your portfolio (and the LionGlobal All Seasons Fund (Growth) after its 90-day minimum holding period), and transfer out the cash proceeds.
4) LionGlobal All Seasons Fund (Growth) Details
What is LionGlobal?
- Lion Global Investors (LGI) is one of the largest asset managers in Southeast Asia, and is an indirect subsidiary of OCBC. At end of 31 March 2021, LGI managed S$66.7 billion of AUM.
What does the LionGlobal All Seasons Fund (Growth) invest in?
- The Fund invests in a mix of ETFs and actively-managed funds to derive its multi-asset exposure.
- Right now, the asset allocation is roughly 70% stocks and 30% bonds, which makes it a slightly more aggressive multi-asset fund.
Our thoughts on the fund:
- Despite having a fund-of-funds structure, the fund is very cost-efficient with a net total expense ratio of 0.355% p.a. (the fund’s gross TER is 0.48%, and Endowus offers a rebate of 0.125% p.a.).
For more details on the fund, you can check out the LionGlobal Fund website.
Alternatively, you can also see the rationale on why Endowus onboarded the fund to their platform in this link.
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