Here is a quick recap of what has happened in the past few weeks regarding MoneyOwl and why one might want to know how to replicate MoneyOwl WiseSaver with Endowus.
It has been announced that MoneyOwl is winding down its financial advisory business and all commercial activities will cease by December 31, 2023.
From my blog posts on MoneyOwl WiseSaver, it is no secret that I am a big fan of MoneyOwl WiseSaver which invests my idle funds in the underlying Fullerton SGD Cash Fund considering the high interest rate environment currently.
For the moment, there is nothing that actually needs to be done since iFAST will be taking over to ensure it is business as usual for MoneyOwl clients.
What Is The Fullerton SGD Cash Fund?
As the name implies, the Fullerton SGD Cash Fund is a cash fund, which has the lowest risk when compared to money market funds and short-duration bond funds.
This is because the Fullerton SGD Cash Fund invests primarily in fixed deposits which are considered the lowest risk of any investment fund with the potential loss risk of 0.01% or less in the case of a maximum drawdown.
Check out my detailed review of the Fullerton SGD Cash Fund to learn more about it.
There is explicit guidance that the word “cash” should not appear in the names of funds that do not comply with various money market requirements, including specific asset and duration limits.
Also, it would be helpful to know that at least 10% of the fund’s net asset value should be in daily maturing assets and at least 20% in weekly maturing assets to qualify.
How To Use Endowus To Replace MoneyOwl WiseSaver (Same 0.15% Fees)
Now that MoneyOwl is out of the picture, I suppose most MoneyOwl clients are likely to stay put with iFAST in the short term.
The idea is that we can replicate MoneyOwl’s WiseSaver product, which is just Fullerton SGD Cash Fund.
|Fund Level Fee||0.15%||0.15%|
For MoneyOwl, it was super simple to understand because the only fee that exists is the fund level fee of 0.15% which has already been factored into the fund price.
As users, we simply just see the cash fund that we hold grow in value every day.
As far as I can remember, I recalled reading that the Fullerton SGD Cash Fund has never seen a single day of negative returns.
MoneyOwl does not charge any advisory or platform fees, so the only MoneyOwl fee we are paying is a fund-level fee of 0.15% that is already factored into the price of the fund.
Now, before we take a closer look at Endowus, there is actually an easier way to do this i.e. replicate MoneyOwl WiseSaver in Endowus but it may not be applicable to you, which is why I am going through the do-it-yourself DIY option first.
First of all, Endowus is a digital advisor that is also based in Singapore.
Considering that both of them are competitors in the same space, Endowus is an obvious and capable choice when it comes to replicating what MoneyOwl can provide.
To do that, we need to make use of the Endowus Fund Smart platform that allows us to build our own customisable portfolios with direct access to funds at a low cost.
After logging in to the Endowus platform, we will see the following screenshot by adding a new goal.
To clarify doubts, Endowus Fund Smart has separate pricing depending on what we are using Fund Smart for.
If we are using Fund Smart to invest in Fullerton SGD Cash Fund, which is a short-term cash management fund, we will be only paying a flat Endowus fee of 0.05% per annum.
Within the Endowus platform, after adding in a new goal, all we need to do is select Short-Term Cash Management as the Goal Type.
Thereafter, we can see 4 options and all we need to do is to select the Fullerton SGD Cash Fund as the only fund to be contained within our newly created goal.
When we put together the Endowus fee (0.05%) that we are paying and the fund level fee (0.15%) minus the cashback (0.05%), we end up with exactly the same all-in total fee as WiseSaver, which was charging 0.15% p.a. total cost as well.
Transfer MoneyOwl WiseSaver into Endowus
Like I have mentioned earlier, there is an alternative option for our cash investments in MoneyOwl WiseSaver.
Our cash investments in the WiseSaver Portfolio (Fullerton SGD Cash Fund) can be transferred to Endowus.
However, one important criterion is that there needs to be a minimum transfer amount of S$1,000 per fund.
If you don’t meet this requirement, you can simply liquidate your MoneyOwl WiseSaver portfolio and fund your Endowus cash management goal using the steps outlined above.
Last but not least, it is important to point out that the transfer process can take up to 4 weeks to complete.
Endowus Referral Code ($20 Fee Waiver)
At no extra cost to you, enjoy $20 off your Endowus fees when you sign up with my exclusive referral code.
I am currently using Endowus for CPF investing and seeded a small amount of money into Endowus Income after it experienced historical losses in 2022 due to the hostile interest rate environment. I like ugly charts.
There is a good chance that I will consolidate my MoneyOwl (iFAST) investments into the Endowus platform in the near future.
Meanwhile, Endowus Wealthtech Conference will be taking place from 20 – 21 October 2023 at Conrad Centennial Singapore, and I will be holding a giveaway for free tickets (worth $20) to the event! Besides the high-value speakers and panels, there will be free food and games as well as goodie bags (worth $45). All existing and new subscribers to my blog are eligible for a chance to win in the giveaway.
Read more Endowus blog posts
- Endowus CPF $20,000 Portfolio Review And 3 Questions I Asked About It
- Endowus Portfolio (CPF And Cash Smart) Update Review
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Kevin started Turtle Investor when his net worth languished at negative $25,755. His desire to turn things around led him to build passive income from investments and side hustles that pay for his daily expenses and vacations. You can learn more about Kevin here.