“Not All Risk Is Productive”: Nobel Laureate Robert C. Merton Dismantles Market Myths at Endowus and Dimensional Fund Advisors’ The Laureate Dialogue in Hong Kong

HONG KONG, 11 June 2026 — Endowus, Asia’s leading independent wealth advisor and investment platform, today co-hosted The Laureate Dialogue: Insights from Robert C. Merton and Dimensional Fund Advisors, an exclusive in-person event at The China Club, Hong Kong. The event brought together Endowus’ private wealth clients, institutional partners, and industry leaders for a rare morning of intellectual exchange with some of the most distinguished minds in global finance.

The event featured a fireside chat moderated by Samuel Rhee, Co-Founder, Chairman and Group Chief Investment Officer of Endowus, with Professor Robert C. Merton — the 1997 Nobel Laureate in Economics, MIT Sloan School of Management Distinguished Professor of Finance, and Resident Scientist at Dimensional Fund Advisors. This was followed by a leadership panel delving into the unique advantages of Dimensional’s investment strategy and expertise, with its senior global investment executives and Hugh Chung, Chief Investment Officer of Endowus.

A Morning of Nobel-Winning Insight

The Laureate Dialogue marked a rare convening of investors and industry leaders in Hong Kong with Professor Robert C. Merton, one of the most influential figures in modern finance. 

Professor Merton is widely recognised for his contributions to modern financial theory and for his work on long-term financial decision-making and retirement income solutions. His research has shaped academic and industry approaches to risk, financial innovation and retirement security. 

Professor Merton discussed key advances in financial science and innovation and the key challenges and structural considerations shaping the retirement industry today, drawing on decades of work at the intersection of financial theory and practical implementation. 

On markets themselves, Professor Robert C. Merton pushed back against any notion that prices simply reflect the average view of investors. The market, he argued, "is a weighted average — weighted toward those with the greatest resources, the best technology, and the sharpest minds. Institutional investors, who drive the largest trades and move markets, bring competitive advantages that most retail participants simply cannot match." 

Professor Merton added that: "Not all risk is productive. Taking on more volatility does not automatically generate more return. The discipline lies in identifying which risks carry genuine compensation — and building portfolios around those."

His participation reflects a longstanding relationship between Endowus and Dimensional, where Professor Merton serves as resident scientist. For more than four decades, Dimensional has worked closely with leading academics and researchers, helping translate advances in financial science into practical investment solutions for investors around the world. 

The Laureate Dialogue brings together globally recognised thought leaders, especially Nobel Laureates, with investment practitioners, underscoring the value of bringing academic insight and investment practice in a single forum focused on the science of investing. 

Dimensional Panel: Navigating Markets Through Science and Discipline

The second session featured a panel discussion with Dimensional’s global leadership team: Savina Rizova, Co-Chief Investment Officer, and Joel Kim, CFA, Chief Executive Officer for Asia ex-Japan and Head of International Fixed Income. The panel examined the founding principles of Dimensional, the investment philosophy and processes underpinning its exceptional multi-decade track record, and the practical application of factor-based, evidence-driven strategies for clients navigating today’s market environment.

Topics included the evolution of factor investing since Fama and French’s landmark 1992 research, the role of diversification and low-cost implementation in generating consistent long-term returns, and how Dimensional’s approach is distinguished not only by its research but by the rigour and flexibility of its execution.

Savina Rizova, Co-Chief Investment Officer and Global Head of Research at Dimensional Fund Advisors, said “At Dimensional, our focus has always been on translating decades of financial research into practical investment solutions that can help investors pursue better outcomes. Investing is about three dimensions: risks, costs, and expected returns. At Dimensional, we always think about the tradeoffs across these three in portfolio design, management, and trading. Improving on each may help investors build a more resilient path toward their long-term goals. Our partnership with Endowus reflects a shared commitment to providing investors with access to evidence-based investment strategies, supported by data, transparency and discipline.”

Joel Kim, CFA, Chief Executive Officer for Asia ex-Japan and Head of International Fixed Income talked about the investment cost and pointed out that: “Trailer fee commissions remain common practice in Asia, making truly conflict-free advice feel unfamiliar, even strange, to many in the region. In other jurisdictions, such as the UK and Australia, regulators have moved to mandate it." 

But the case for it is simple, as Endowus' CIO Hugh Chung put it: “Conflict-free advice changes the behaviour of everyone involved. Selecting managers and funds without conflicted fees is a genuinely meritocratic process — to the benefit of the end investor.”

Samuel Rhee, Co-Founder, Chairman and Group Chief Investment Officer at Endowus, said “Having Professor Merton in Hong Kong is a rare privilege, and hosting this dialogue is a reflection of what Endowus is here to do: give every investor access to the highest calibre of thought leadership, not just the wealthiest few. The principles we have built Endowus on — evidence-based investing, genuine alignment with clients that removes conflicts of interest, designing for outcomes rather than for products — draw directly from decades of work by scholars like Professor Merton and other practitioners that make up the exceptional team at Dimensional. Our partnership with Dimensional goes back to the very start of Endowus, and this morning is a celebration of how that shared conviction can be delivered to our investors across Asia.”

Dimensional’s Recent Developments in Hong Kong and Asia Pacific

Dimensional has continued to strengthen its presence and capabilities in Hong Kong and across Asia Pacific, underscoring its long-term commitment to the region. Recent milestones include the expansion of its regulatory licence with the Hong Kong Securities and Futures Commission (SFC), enabling the firm to offer a broader range of solutions to more clients, the growth of its Hong Kong office footprint in early 2026, and securing recognition for four UCITS ETFs in Singapore, broadening access to Dimensional’s investment solutions across the region.

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More photos of Professor Merton and the event can be reached here.