Why invest through Endowus

Whether you are growing your long-term wealth, planning ahead for your family, or looking for passive income in retirement, there is something for everyone at Endowus — from novice to professional investors looking to grow their wealth sustainably.

Endowus is Asia’s leading digital wealth platform. We help investors grow their money with expert advice and access to institutional financial solutions at low and fair fees, through a personalised digital wealth experience. Endowus is an independent wealth advisor paid solely by its clients — we do not take commissions or trailer retrocessions typically paid to distributors by fund houses, and thus our advice is unaffected by any conflicts of interest. 

Here’s what sets us apart from other fund distributors and digital wealth platforms in Hong Kong.

At Endowus, wealth management for everyone

Invest in curated, Best-in-Class investment strategies to grow your wealth and meet your goals — whether you’re investing towards your essential financial goals, seeking passive and consistent income, growing your cash with higher yields, or looking for exposure to select market opportunities or regions. Customise your own portfolio by buying your favourite funds through the Endowus Fund Smart platform.

Individuals get institutional access to high-performing funds at lower costs. Previously, individual investors were not able to invest in the cheaper class of funds, known as the institutional share-class. But not anymore — you can now invest in institutional share-class funds, some exclusively on Endowus, starting from just HK$10,000.

These institutional and clean share-classes of funds bring your costs down significantly compared to industry average.

For an overview of all the funds available on the Endowus Fund Smart platform, refer to our investment funds list. 

Invest like an expert with Best-In-Class products 

Endowus takes a curated approach to our fund selection. We screen for Best-in-Class unit trusts, also known as mutual funds, with proven track records across asset classes and strategies, to ensure that the most appropriate building blocks are in place to get you to your goals. We do all the work, so you can invest better to live better.

Backed by science, not speculation

We partner with the world’s leading fund managers to make their scale, time-tested and research-backed investment strategies, and low cost accessible to everyone.

Our curated list of Best-in-Class funds — picked by experts, and managed by experts — span a wide range of investment styles. The broad selection includes funds focused on generating consistent income, multi-asset funds for building a diversified portfolio with both equity and fixed income, as well as sustainable funds incorporating environmental, social, and governance (ESG) factors. You can also invest in small and mid-cap equities, megatrends transforming our world, as well as growth or value equity plays.

US dollar (USD) funds as well as HK dollar (HKD) funds are available on Fund Smart.

In building an investment portfolio, we advocate systematic strategies that have broad diversification implemented by professionals — diversifying your investments means allocating your money across different asset classes, industries, countries, and other categories.

Diversification

A unit trust, also known as a mutual fund, is a pool of capital managed by a professional fund manager. This pool is invested into a variety of assets to meet specific investment objectives. There are therefore many types of unit trusts for you to choose from, built to achieve many types of goals.

With unit trusts, you can achieve diversification — each fund has many underlying holdings across asset classes and geographies. When investing on Fund Smart, you should strategically consider geographies, sectors, themes or asset classes you want to have additional exposure to, to better complement or diversify your existing investments, or to meet your specific needs.

Diversification is critical to long-term investor success. Simply put, it brings to mind the proverb: “Don’t put all your eggs in one basket.” By diversifying, the aim is to decrease overall risk and increase returns by spreading out your money. Limiting exposure to any single asset or category helps to mitigate risk in the event that one of them experiences a significant loss in value. Asset classes have their own cycles, and some can react very differently from others; when one asset class is generating strong returns, another may be performing poorly. For example, bond prices tend to move up when stock prices fall. Gold prices usually increase when the US dollar weakens.

Significantly lower, fair and transparent fees

The all-in Endowus Fee is a per-annum fee based on the value of assets you hold with Endowus. We do not charge a sales fee, transaction fee, or any other hidden fees, unlike other platforms. You also get 100% Cashback on all commissions, known as trailer fees — we have returned more than US$4.5 million in these fund-distributor commissions (as of January 2023) to our Singapore clients since inception. 

For the Fund Smart platform, the Endowus Fee depends on the investment objective of your goals — it is 0.10% per annum for short-term cash management and 0.40% per annum for mid to long-term investing, investments over HK$20 million will enjoy additional fee break. The fee is charged quarterly on a pro-rata basis of the daily average investment value of your investments.

Endowus is an independent wealth advisor paid solely by its clients, which ensures our advice is unaffected by any conflicts of interest. Unlike other platforms, we do not collect trailer fees, which eat into your returns and wrongly incentivise other advisors and platforms to sell certain funds that may not be suitable for you. This reduces our costs to a fraction of the industry average, which then translates to better returns for you in the long term.

It is more transparent and, in most cases, much lower cost to invest and grow your wealth through Endowus compared to if you were to replicate your portfolio and similar services at a private bank, an online “low cost, no fee” platform, or a retail bank.

You may wish to compare your existing fund holdings with what is available on the Endowus Fund Smart platform. It is possible that you can invest in the same fund(s) but at a lower cost on Fund Smart, or you may find a better alternative to replace your current investment.

Rigorous fund-selection process

The Endowus Investment Office is a team of investment experts with over 150 years of experience combined, across public and private market investing, family offices, and wealth management. The team screens the universe of unit trusts, also known as mutual funds, and curates a final list by implementing a strict, institutional-grade screening process that is rigorous, thorough, and continuous. The process vets funds across categories to bring you only those that are Best-in-Class, and the team monitors the funds regularly in terms of performance.

The funds’ performance figures are transparently updated on a regular basis.

Digital platform with a human touch

Get personalised, expert advice for your goals. Our team of licensed client advisors have years of experience advising clients from all walks of life, including professionals and business owners. We are a digital platform, but one with a human touch.

Your ideal asset allocation will change over time, based on your age, circumstances, goals, and the markets, your ideal asset allocation will change over time. We'll advise you on when the time is right to optimise your exposure.

If you need a little help, please schedule a call with one of our licensed client advisors here.

Learn more about the Endowus HK team in this article.

Private Wealth & Professional Investors

If you are a professional investor (PI), Endowus offers alternative investments that complement your public-market portfolios — such as private equity, private credit, private real estate, quant, hedge funds, absolute return, and market neutral strategies. These come with the same Endowus promise of unrivalled low fees, no sales or subscription charges, and institutional-grade security.

PIs get broader access to more financial products than retail investors. PI-only products cover more asset classes and strategies, thereby bringing diversification benefits. 

If you’d like to become a professional investor with Endowus, you may opt in by contacting support.hk@endowus.com with the relevant supporting documents.

Endowus Private Wealth

Our private wealth arm, Endowus Private Wealth, focuses on the wealth management needs of affluent individuals and their families. Through a holistic and personalised wealth experience, we help you define your priorities and systematically implement a wealth plan with purpose. Clients with a minimum of US$1 million in assets across our services can gain access to more personalised solutions and products with Endowus Private Wealth. For more information, contact us for a consultation or email us at privatewealth.hk@endowus.com.

Seamless investing

With Endowus, you get a seamless, one-stop digital fund platform to invest in the wide range of top-tier funds available on our Fund Smart platform. 

You can start investing through Endowus from just HK$10,000. Subsequent investments are at a minimum of HK$500 (or US$100 for USD investments). The minimum account size of HK$10,000 is calculated across all your goals, not per goal.

Set up your first investment on our platform in a few simple steps. Start by adding a new investment goal, then select your investment horizon and investment objective for that goal. Browse the curated fund list based on your selection, choose the fund you want to invest in, and then confirm your investment. For a quick guide on these steps, click here.

If you wish to make regular investments or do dollar-cost averaging, you can easily set up and manage automatic, recurring monthly investments into your goals, or redeem money when you need it.

Unless specified for certain alternative funds, there are no lock-ups and no penalties for early withdrawals when you invest through Endowus, so you can maintain flexibility with your money.

Keeping your money secure

Your money and assets are held securely and separately from the Endowus company assets at every step of the way, as required by the Securities and Futures Commission of Hong Kong. This means that Endowus does not and cannot use clients’ money for our own use.

All your investments are held at the custodian accounts maintained by the transfer agents of the individual fund houses (such as Fidelity, Invesco, and more). Your uninvested cash balances are kept in a segregated client funds account at HSBC Hong Kong, regulated by the Hong Kong Monetary Authority. These entities are regulated and have proper security measures to protect your assets.

Endowus puts our platform through a strict third-party assurance framework. This framework consists of regular penetration testing and continuous attack surface testing. Features such as two-factor authentication (2FA) and session timeout are also built with security in mind. Withdrawals from your Endowus account can only be made to your verified linked bank account in your name, after confirmation via 2FA.

Your money and assets are protected from creditors in the unlikely event that Endowus goes into liquidation. In the unlikely event of a closure, Endowus will work with partner custodians, which hold clients’ money and assets, to ensure the orderly transfer of money and assets to other licensed financial institutions or the return of all money and assets to clients.

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With Endowus, investing is now made low-cost and accessible for every season in life, investing goal, and risk appetite. Make time your biggest asset and begin your investing journey with Endowus today. To get started, click here.

Customise your own portfolio by buying your favourite funds through the Endowus Fund Smart platform.

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Risk Warnings

Investment involves risk. Past performance is not an indicator nor a guarantee of future performance or returns. Projected performance or returns is not guaranteed to materialise. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund.

General risk warnings relating to collective investment schemes 

Before making an investment decision, you are reminded to refer to the relevant prospectus/ offering document for specific risk considerations and related fees and charges. Funds are not a bank deposit and not capital guaranteed, and is subject to investment risks, including the possible loss of the principal amount invested. Some of the funds also involve derivatives. Do not invest in them unless you fully understand and are willing to assume the risks associated with them.

Opinions

Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endowus HK Limited (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus HK Limited, its affiliates, directors, employees, representatives or agents have given any consideration to, nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.

No invitation or solicitation

Nothing contained in this article should be construed as a solicitation, an offer to buy or sale, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction in any jurisdiction in which such solicitation, offer to buy or sale would be unlawful under the securities laws in such jurisdiction. No information included in this article is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any advisory product or service; or an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, financial product, or instrument; or to participate in any particular trading strategy. Investors should seek independent financial and tax advice before making any investment decision.

Product Risk Rating: Please note that any product risk rating (the “PRR”) provided by us is an internal rating assigned based on our product risk assessment model, and is for your reference only. The PRR is subject to change from time to time. The PRR does not take into account your individual circumstances, objectives or needs and should not be regarded as advice or recommendation to purchase, hold or sell any fund or make any other investment decisions. Accordingly, you should not solely rely on the PRR in making your investment decision in the relevant Fund.

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