We hope that you are well, safe, and healthy amidst COVID-19 and the market volatility.
We have noted that a Singapore-based robo-advisory firm, Smartly, recently made an announcement on exiting the market. We feel for their clients and wish them a smooth transition to another wealth services provider.
We understand that this may naturally raise some questions about Endowus. We wanted to let you know that our business, our services, and our investment philosophy are unwavering in the pursuit to help you invest better to live better. Safeguards, security, and continuity are built into every layer of our platform.
Safeguarding your assets: Our partnership with Singapore’s largest broker, UOB Kay Hian
Endowus clients are given an account in their own name at UOB Kay Hian, Singapore's largest broker and a CPF Investment Administrator. Clients send money to UOB Kay Hian directly, and UOB Kay Hian processes transactions on the instructions of Endowus, so we never touch your money. This double ledger system ensures that the security and continuity of our client's positions is a priority.
Our double ledger system is different from others in the ecosystem but we felt it necessary to best protect client assets and interests as fiduciaries and trusted advisors of your wealth.
We plan to be around forever, but in the unlikely scenario where Endowus ceases to operate, for whatever reason, you would still retain the UOB Kay Hian account in your own name with your investment assets, and will have full access to your UOB Kay Hian account. Because the money is not commingled or custodied by us, you can maintain your UOB Kay Hian account for as long as you want, and redeem your investment holdings at any time with no additional cost.
Just as we would want our own wealth safeguarded, we structured our business processes from the beginning to make it the safest way to invest digitally in Singapore.
Backed by the UOB Group, UOB Kay Hian is the largest brokerage in not just Singapore but one of the largest in Asia. Last year, UOB Kay Hian acquired DBS Vickers’ offline retail securities brokerage business, which allowed them to further scale their business and cement their leading position in the Singapore retail market. UOB Kay Hian has a Capital Markets Services license from the Monetary Authority of Singapore.
Our investment philosophy: Unwavering through market cycles and standing on the shoulders of giants
We have received questions around how we are faring during this market volatility. We believe in evidence-based investing to maximise your probability of long-term success. This means staying true to the strategic passive asset allocation suitable for your goals and risk tolerance. This differs from a strategy that tactically tries to time the market, which empirically has a low probability of long-term success.
Endowus partners with leading global fund managers, such as PIMCO, Vanguard, Dimensional, and the largest domestic fund managers, making their scale, time-tested investment processes, and low cost accessible to all of us. They have long track records and have managed trillions in assets through market cycles. We continue to closely monitor their performance and risk management through regular due diligence.
Our business: Growth, stability and exhilaration
First of all, thank you. Your trust, your referrals, your patience and your interests in our offerings are what drive us forward, and push us to uphold strict standards of the safety of your assets.
Endowus, as a company, is in a position of great strength and we are excited about our future and the services we provide to you.
Our underlying business momentum is strong
We have continued to see steady growth in our assets under advice and revenue despite the recent market volatility. We are pleased that new investors in pursuit of a better client experience are finding us every day. We thank you for your trust, referrals, feedback, and continued support as this would not be possible without you, our clients.
We are well-capitalised by the Partners and employees of Endowus
As you might know, the company is wholly independent and employee-owned with no external shareholders. Every employee, from Partners to new joiners, are given priority to become investors, shareholders and therefore owners of the company. We believe this is the right way to build a lasting company culture and we are proud of it. We have, however, been regularly approached by both strategic and venture capital investors and will examine opportunities for external investment when the time is right.
Industry consolidation is good for us
Any consolidation or shakeout of the digital wealth industry is an opportunity for us to strengthen our position and grow. We have been approached by other robo-advisory companies to acquire their businesses and customer bases in the past, but we have so far chosen to grow organically and focus on our mission to help our clients grow their CPF, SRS and cash savings.
We are the first and only digital advisor for CPF money
We will always be the first but do hope that others will join the good fight. We believe that all CPF members should use their CPF-OA money to invest intelligently, at low cost, to prepare for their futures better. Endowus remains the first and only digital advisor to offer an end-to-end digital experience for investing CPF, SRS and cash savings. We believe new entrants with holistic CPF investing services would be good for the industry, and will bring about more awareness around the benefits of investing CPF monies well. We will continue to pave the way forward and be the benchmark for others to follow.
Lastly, the Endowus Partners and employees are investors in the Endowus portfolios alongside you. We want to allay your anxiety that inevitably comes with the recent market volatility and declines. We are committed to our clients, especially during these difficult times, and we want to be fully transparent and always available to answer any and all the questions you have. Please reach out to our team at firstname.lastname@example.org, or through any of the advisors you have been in touch with. We look forward to responding to your emails and setting up virtual meetings or calls.
We are doing our part by exercising social responsibility with flexible work from home, keeping our office clean, and maintaining social distancing wherever we can. We are thankful that our team is healthy.
Thank you for trusting us with your financial wellbeing. We hope that you are staying healthy and spending quality time with your loved ones while being at home!
Gregory Van, on behalf of the Endowus Team