Why does Endowus recommend portfolio changes?
Our Investment Committee is constantly evaluating the funds in our advised portfolios and the wider investment universe. If we feel that there are other funds that can better express our asset allocation views at a lower cost or improve the risk-return profile of the portfolio, we will recommend a portfolio change to our clients.
We place paramount importance on selecting the best fund managers to partner with, and have leveraged data and technology to build a rigorous framework for manager and product due diligence. As we do not take trailer fees from products on our platform, we always act in your best interest. Our goal is not to give you access to many products, but to build portfolios using the best products.
How does the portfolio change work?
You will receive an email informing you of the recommended portfolio changes, and will have to login to your account to approval the changes. We would strongly advise clients to follow our recommendations, however if you choose not to, you can also opt-in to the portfolio changes at a later date.
If you approve the recommended portfolio changes, we would first redeem the funds which are now either removed from the portfolio or overweight to the new target asset allocation. We will then wait for the redemption proceeds to settle back into your account, and then automatically invest the proceeds into the funds that are newly added to bring your portfolio to the new target asset allocation. As part of the Endowus automated portfolio rebalancing process, we will also take the opportunity to rebalance your portfolio back to its target asset allocation.
Note: The Factor Portfolio is a discretionary portfolio and any Recommended Portfolio Change will be automatically effected. If we find better-performing and/or lower-cost funds that can value-add to the Factor Portfolio, we will directly change the funds in the portfolio. Please be assured that you will be informed of any changes that happen to the funds in the Factor Portfolio.
How long does it take?
The process will take around 7-10 business days after you consent to the changes. See more details here.
Can I still make investments or redemptions while the portfolio change is happening?
While the portfolio change is happening, you can make new investments or redemptions.
Are there any fees involved?
There are no additional fees involved, as this is part of the Endowus advice and value-added service that we provide to our clients.