Singapore's Endowus Offers Global Stock Index Fund Exclusively to CPF Investors
SINGAPORE, April 22, 2020 /PRNewswire/ -- Endowus.com 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.
The newly included fund - Infinity Global Stock Index Fund - is available now and is sub-managed by The Vanguard Group. The Fund is wrapped and included in the CPF Investment Scheme (CPFIS) by local fund manager Lion Global Investor, a member of the Oversea-Chinese Banking Corporation Limited Group.
Endowus is one of Singapore's leading MAS-licensed advisors and the first and only digital advisor for CPF.
CPF members will benefit in two ways from this Fund.
First, 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 becomes the most diversified fund included under CPFIS.
Second, 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.
Endowus Chief Executive Officer Gregory Van said: "We champion 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."
As an industry first, Endowus recently disbursed 100% of the trailer fees (sales commissions) it received from fund managers to its clients.
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.