With interest rates dropping further, there have been requests for a higher-yielding portfolio mix that comes with incremental risk.

The Endowus Cash Management (Ultra) Portfolio is built as an alternative to Cash Smart Enhanced on the Endowus Fund Smart platform, available immediately. This portfolio consists of the  Fullerton Short Term Interest Rate Fund and the Lionglobal SGD Enhanced Liquidity Fund.

Components of Cash Management (Ultra) Portfolio

The Cash Management (Ultra) Portfolio has a higher yield than the off-the-rack Cash Smart Enhanced for 2 reasons:

  1. The Fullerton Short Term Interest Rate Fund has a higher projected yield than United SGD Fund and has outperformed United SGD Fund since July.  The higher projected yield is partially attributed to the longer duration of the Fullerton fund.
  2. Cash Management (Ultra) has greater exposure to short-term bond funds relative to Cash Smart Enhanced.

Despite the slightly higher duration risk,