Why does Endowus recommend portfolio changes?
Our Investment Committee is constantly evaluating the funds in our discretionary 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 trigger 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 portfolio change. No action is required as we will directly make the changes for you.
We will 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.
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.