Managing Your Investments

We will process the online request by 3pm on the current business day. If the request is received after 3pm, the request will be processed by the next business day.

The price of the funds sold will be based on the ending Net Asset Value (NAV) of business day the request is processed.

You will receive an email notification within the next 2 business days. Redemption Proceeds will be reflected in your bank account within 8 business days for Investment Portfolios and 2 business days for WiseSaver Portfolio. If you choose to receive the proceeds in your Cash Account, the redemption proceeds will be reflected in your Cash Account within 7 business days for Investment Portfolios and 1 business day for WiseSaver Portfolio.

For Cash Investments : As soon as there are sufficient monies in your Cash Account, we will process your buy order at 3pm on the current business day. If your buy request is received after 3pm, the request will be processed by 3pm the next business day. The holdings will be reflected in your Investment Account within 4 business days after the request is processed.

For SRS or CPF Investment: If your buy request is received before 3 pm, we will process the buy request on the same business day. If your buy request is received after 3 pm, the request will be processed on the next business day. The holdings will be reflected in your Investment Account within 4 business days after the request is processed.

You can login to your MoneyOwl Account and submit a monthly buy request:

• Login> Under Investment and Savings Card> Select one of the portfolios
• Click ‘Top Up’
• Select the portfolio from the drop-down list> Enter the funding amount for your monthly buy request

We will process all monthly buy requests on the 15^th of every month, or the next working day, if the 15^th is not a working day, provided that there are sufficient monies in your Cash Account/ SRS Agent Bank/ CPF Agent Bank.

For Cash investments: To ensure that your investment can be executed, we strongly advise you to transfer your money on the 10^th of the month (with complete information, including the Reference Code) to ensure that there are sufficient monies in your Cash Account before the 15^th of the month. If there are insufficient monies in your Cash Account by the 15^th of the month, the monthly investment request will be processed on the 15^th of the following month. You may set up standing instructions for your cash investments here:Setting up a Standing Instruction

For SRS or CPF investments : To ensure that your investment can be executed, please ensure that there are sufficient monies in your SRS Agent bank or CPF Ordinary Account on the 15^th  of the month.

For cash investment: Your top-up request will expire after 7 calendar days if there are insufficient monies in your Cash Account to process the buy order.

For SRS investment: Your top-up request will expire automatically if there are insufficient monies in your SRS Agent Bank account to process the buy order.

For CPF investment: Your top-up request will expire automatically if there are insufficient monies in your

CPF Agent bank account to process the buy order.

You can login to your MoneyOwl Investment Account to submit a top-up request:

1. Login> Under Investment and Savings Card> Select one of the portfolios
2. Click ‘Top Up’
3. Select the portfolio from the drop-down list> Enter the funding amount

• For cash investment, the top up request will be processed when there are sufficient monies in your Cash Account.
• For SRS and CPF OA  investments, the top up request will be processed immediately.

During the rebalancing exercise, you may notice a lower portfolio value reflected on your dashboard. This is due to funds currently in transit. Your portfolio value will be updated to reflect its correct holdings once the rebalancing is completed in 6 to 7 working days.

Portfolio rebalancing is the process of realigning the weightages of the assets back to the portfolio’s strategic asset allocation. MoneyOwl may, at its discretion, rebalance the portfolio about twice a year, upon meaningful deviation from strategic asset allocation or upon review of the asset allocation of the portfolio.

The Cost of Investment is the combined Cost of Investment for all the funds that make up the portfolio.

Here’s how we calculate Cost of Investment for each fund:

The left-hand side of this formula calculates the Weighted Average Cost (WAC) of your investment units, which is the average price you pay for each unit of the fund you currently hold. Here’s an example:

You invest $100 today when the price of each unit is $10, so you bought 10 units.

Next month you invest another $200 when the price of each unit is $12.50, so you bought another 16 units.

Therefore WAC = ($100 + $200)/(10 + 16) = $11.54

Note that the WAC changes each time you buy into the fund as the price of the fund changes daily.

We then multiply the WAC by the current number of units of your fund to compute your Cost of Investment. The number of units could have changed due to withdrawals, because when you make a withdrawal from your investments, the units sold multiplied by the WAC will be reduced from your Cost of Investment.

While Net Deposits is a simpler way to look at how much you have invested (simply your deposits minus your withdrawals over a given time frame), one important drawback of Net Deposits is that it can be a negative number when you have a significant withdrawal. Here’s an example of how it can be confusing:

You invest $100 today when the price of each unit is $100, so you bought 10 units.

Next month the price went up to $12.50 and you sold all 10 units.

Therefore, Net Deposits = $100 – $125 = -$25

Your Net Deposits is now negative which is hard to interpret. Using Cost of Investment, the result will be zero which makes a lot more sense.

The total returns are based on time-weighted return approach, which is calculated by multiplying the daily returns of your portfolio and linking them together to show how the returns are compounded over time. It shows you how much $1 of your investment would have grown throughout your investment period, without considering the size and timing of interim cash inflows or outflows. This is in line with how fund managers measure the performance of their funds.

Mathematically, if the period 1 return on your investment is represented by r₁, and period 2 is represented by r₂ and so on, the Time-Weighted Return is determined by the formula below: Total Returns = [(1+r₁) (1+r₂) (1+r₃) (1+r₄) …. (1+r_n)] – 1

Example:

Suppose Peter invests $10,000 into a portfolio on 1 Jan. On 1 July, his portfolio is valued at $11,500 and at this point he adds another $1,000 bringing his portfolio value to $12,500 ($11,500 + $1,000). By the end of the year, the portfolio has decreased in value to $12,000.

Period Return (1 Jan to 30 Jun) = ($11,500 – $10,000)/$10,000 = 15%

Period Return (1 Jul to 31 Dec) = ($12,000 – $12,500)/$12,500 = -4%

Therefore, the Time-Weighted Return during this entire period (1 Jan to 31 Dec) is 10.4%, which is computed by geometrically linking the returns of the two periods, i.e. [(1+0.15) (1-0.04)] – 1 = 10.4%

You can login to your MoneyOwl Account to check on your portfolio value.