The hot topic in the forums is "MoneyOwl by Temasek Trust" offering Amundi Index MSCI World S$ (as well the Amundi Global Bond and Amundi Emerging markets) via the POEMs platform. While it looks like a mouthful of jargon, the announcement is significant as it amounts to an undercutting of Endowus, Syfe, FSMOne, etc etc.
The key features of the MSCI World fund are the S$ denomination, so you don't have to change between S$ and US$ at unfavourable rates (obviously the fund manager has to change your S$ to buy the shares but one assumes they have better rates) and the 0.10% expense ratio. For reference, iShares MSCI World ETF IWDA has a 0.20% expense ratio and is denominated in US$, so you have to pay forex charges to switch into US$.I have advised some (less IT and financially savvy) relatives to use their Poems to buy Lion Global All Seasons fund (0.48% expense ratio) which is relatively low cost, S$ denominated balanced fund that fortunately holds S&P500 so it benefited from the never-ending US market rally. But I will be asking them to switch to Amundi.
I have a POEMS account as well so I will dump some money into their cash management account and set up an RSP to deduct from the cash management account. This is ideal for me as I was getting worried my IBKR account size was getting too large and I was looking for a good low cost alternative (SCB is my no.2 account, but it is not low cost because of the high forex charges).
[9/12 update] Do note that the prospectus lists two funds: Amundi index MSCI World (direct replication) and Amundi MSCI World (synthetic). The fund sold by Poems is Amundi Index MSCI World which is direct replication, so I have amended the title since the word 'index' makes all the difference.
[11/12 update] The POEMS RSP bug is fixed and the sales charge for RSP is 0% as it should be. Also it should be noted that since the fund is domiciled in Luxembourg and is direct replication, it does not receive favourable US withholding tax treatment that Ireland domiciled UCITS funds receive. However, for many, the upsides of this fund will outweigh the downsides.
But Poems RSP have 4.5% charge..
ReplyDeleteYou are right, currently as of 9/12, RSP is still showing 4.5% sales charge. I plan to buy manually at the moment rather than RSP, but I expect that Poems will correct that 'error.' I checked my order status for manual order, confirmed 0% sales charge.
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