Most of the funds on Endowus are accumulation share class funds. This means any distributions received from the underlying securities will be automatically kept or reinvested within the fund/funds. There are no additional charges or fees. This allows you to compound your distribution returns as long as you stay invested.
Where will my distributions be credited to?
For distribution share class funds, you have the flexibility of choosing to have distributions:
- Deposited into your Endowus cash balance (for cash investments),
- Withdrawn to your bank account (for cash investments),
- Withdrawn to your CPF or SRS account (for CPF/SRS investments that are in Fund Smart portfolios only)
- Be automatically reinvested at no cost (for cash/CPF/SRS investments).
By default, all new and existing CPF and SRS investment plans are set to Reinvest. If you'd like your CPF or SRS dividends withdrawn instead, you may change your payout preference under the Payout Preference section (see How do I change my payout preference? below).
Please note:
- For Fund Smart portfolios containing distribution share class funds, only distributions of $1 and above will be automatically reinvested; distributions below $1 will be credited to your Uninvested Cash Balance.
- For the Endowus Income Portfolios, distributions below $10 will not be withdrawn to your linked bank account, and will be credited to your Uninvested Cash Balance instead.
- For funds with minimum investment requirements, distributions will only be automatically reinvested if the distribution amount meets the fund's minimum investment. If not, the distribution will be credited to your Uninvested Cash Balance.
- Unlike cash account distributions, CPF and SRS dividend withdrawals have no minimum thresholds – they will be processed regardless of amount.
The payout preference or option you select depends on your individual circumstances and need for cash distributions to supplement your cash flows.
What if I've fully redeemed from a portfolio, or the distributing fund is no longer in my portfolio?
If you are due to receive distributions upon fully redeeming from your portfolio, or if the distributing fund is no longer part of the portfolio's target asset allocation (portfolio itself may still have other investment holdings), we will credit the distribution proceeds as follows:
-
For cash investments:
Payout preference is to credit to cash balance or reinvest – credit to cash balance
Payout preference is to withdraw to linked bank account – withdraw to linked bank account
For CPF/SRS investments: Withdraw to the respective CPF/SRS account
How do I change my payout preference?
You can choose whether to have your dividends be reinvested automatically, kept in your Endowus account, or withdrawn immediately to your bank account, CPF account, or SRS account. CPF/SRS withdrawal is currently available for Fund Smart portfolios only.
* Note: The option to automatically reinvest distributions is currently not available for the Income Portfolios.
To change the payout preference of your distributions, on the Endowus web app, you may select your goal with distribution share class funds and select "Change" under "Payout Preference".
Thereafter, you may select how you would like to receive your payouts and confirm your choice via SMS.