Endowus, a digital wealth platform licensed by the Monetary Authority of Singapore, has announced the launch of the Endowus Income Portfolios.
The product has three life-stage based portfolios, including “stable income” for the older generation, “future income” for the younger generation, and “higher income” for middle-aged people.
“The three portfolios have varied monthly payouts pegged to different risk tolerance levels and immediate income needs. They all have the same ambition of facilitating a viable and stable long-term passive income stream with capital preservation in mind,” said an Endowus spokesperson in a statement.
The stable income portfolio allocates 100% of its AUM in global fixed income and has a current payout target of 4% to 5% per annum.
It has limited estimated capital appreciation and is suitable for conservative investors such as retirees or those who want a regular passive income stream to meet expenses reliably.
The higher income portfolio combines 80% global fixed income and 20% global equities and has a current payout target of 5% to 6% a year.
The portfolio is suitable for working adults with heavier financial responsibilities and a family to support who hope to meet bigger regular expenses, while still being able to grow wealth moderately over the long term, according to Endowus.
Finally, the future income portfolio invests 60% of its AUM in global fixed income and 40% in global equities. The portfolio has a current payout target of 3% to 4% and a higher estimated capital appreciation. It is targeted at younger working adults with conservative risk tolerance and a longer investment horizon.
Partners
The Endowus Investment Office works with 12 global fund managers to build the portfolios, namely Aberdeen, Alliance Bernstein, Allianz, Blackrock, Columbia Threadneedle, Dimensional, Fidelity, First Sentier, JP Morgan, Neuberger Berman, PIMCO and Schroders.
The products are all hedged to the Singapore dollar to minimise currency risk. There are no sales or redemption charges, and trailer fees are rebated.
The portfolios were introduced to existing clients in December, with S$10 million ($7.44m) invested in the product in three weeks.
With total assets in Singapore of around S$1bn, Endowus is a digital investment advisor for the Central Provident Fund (CPF) and the Supplementary Retirement Scheme (SRS).
Endowus was set up in 2017 by former UBS investment banker Gregory Van, and Sun You Ning who has worked at Goldman Sachs and Blackstone. They were later joined by former Morgan Stanley Investment Management executive Samuel Rhee. The digital platform was launched 18 months ago.
Last year, the firm received investments from strategic partners UBS, Samsung Ventures and Singtel Innov8, along with their Series A investors— Lightspeed Venture Partners and SoftBank Ventures Asia.
