- Why are Gross Yield and Net Yield different?
The portfolio invests in assets denominated in different currencies. To help reduce foreign exchange fluctuations, currency hedging may be used. Hedging incurs costs or benefits depending on prevailing interest rate differentials and market conditions.
As a result, the Estimated Net Yield may be lower or higher than the Gross Yield.
- Which yield should I use when assessing potential returns?
The Estimated Net Yield may provide a more representative indication of the portfolio's expected yield after taking current hedging costs into account.
However, both Gross Yield and Net Yield are estimates and should not be viewed as guaranteed returns.
- Does a lower Net Yield mean the portfolio is performing poorly?
Not necessarily.
The Gross Yield reflects the income generated by the underlying investments. The difference between Gross Yield and Net Yield primarily reflects the cost of managing foreign currency exposure rather than the credit quality or performance of the underlying investments.
- Are the displayed yields guaranteed?
No. Gross Yield and Estimated Net Yield are forward-looking estimates based on prevailing market conditions and portfolio holdings. Actual returns may differ and can vary over time.
- Is there a minimum investment amount for Cash+ Xtra?
You can start earning more with your cash from just S$1.
- How do I receive gains from Cash+ Xtra?
Cash+ Xtra returns are accrued daily and automatically reflected in your portfolio net asset value (NAV). The NAV may increase or decrease as the value of the underlying funds increases or decreases, respectively.
- When can I receive my cash after making a withdrawal from Cash+ Xtra?
It takes up to 5 business days to receive your withdrawal proceeds in your bank account.
- How does UOBAM compute the yield to maturity ("YTM") of the Cash+ Xtra Portfolio?
The Cash+ Xtra Portfolio's YTM is presented based on the weighted average gross yield to maturity ("YTM") of the Portfolio's underlying funds, less the weighted average Total Expense Ratio ("TER") of the underlying funds, and less the 0.05% p.a. UOBAM Invest Advisory Fee.
The YTM It is presented in SGD terms and may be affected by the undertaking of discretionary portfolio management strategies such as currency hedging.
- What is the difference between yield and returns?
Yield typically refers to the income generated by an investment, such as interest or dividends, expressed as a percentage of the investment's value. It focuses on the income aspect of the investment based on certain assumptions or projections, such as the stated interest rate or dividend yield and it represents the theoretical yield that an investment is expected to generate.
Returns, on the other hand, encompass both income (yield) and capital appreciation or depreciation of the investment over a specific period. It represents the real income or return realized by an investor over a specific period. Actual returns may differ from expected gross yield due to various factors such as changes in market conditions, fluctuations in interest rates, hedging strategies, unexpected market events, and any other costs and it may be higher or lower than the expected yield as it reflects the actual performance of the investment.
For example, if you have invested $1,000 in a bond with a 5% annual interest rate, the yield on the bond is 5% because that's the interest rate promised by the bond issuer. However, if the value of the bond increases over time and you sell it for $1,060, your actual return includes both the interest you earned (yield) plus the capital gain from the increased value of the bond. So, while the yield remains at 5%, your actual return of the capital gain would be $60 ($1,060 - $1,000).
- What fees do I pay?
There is no platform charges and withdrawal fees. However, there is an advisory fee of 0.05% p.a. and charged quarterly. Assuming the amount you invested is $10,000 for the whole year, your fees will be approximately S$5.
- Why wasn’t my order or recent transactions processed right away?
UOBAM Invest processes transactions one at a time, in the order they are received. If there is a pending transaction, such as a withdrawal or rebalancing, any new transaction will only be processed after the earlier one is fully settled.
This approach ensures accuracy and proper handling of your portfolio activities. You can check the status of your transactions anytime under the “Orders” page in your portfolio. For more flexibility, you may open multiple managed portfolios to separate your investment goals and avoid processing overlaps.
- How frequent profit withdrawal affects my portfolio?
UOBAM Invest portfolios, such as Cash+ Xtra are designed for longer-term investing. These portfolios aim to grow your wealth steadily over time, rather than support short-term trading strategies. Regular withdrawals may slow down the processing of both withdrawals and top-ups, as each transaction must be settled before the next begins.
- Can I have more than one managed portfolio?
Yes, you can open multiple managed portfolios under UOBAM Invest. This gives you greater flexibility to manage different investment goals or financial needs separately. By separating your funds into distinct portfolios, you can avoid transaction overlaps (like simultaneous top-ups and withdrawals) and enjoy smoother processing times. It also helps you track performance and manage strategies more effectively.
