As geopolitical tensions rise and investors become increasingly anxious, Samuel Rhee, chairman and CIO of Endowus, discussed the impact war and conflicts have on financial markets. Many wars have had minimal impact on the existing trajectory of markets, and markets have weathered more than their fair share of geopolitical events over the years. The worst thing for markets is not war but the uncertainty that creates volatility. On the bright side, the stock market normally prices in risks quickly, reassesses growth and earnings, and moves forward as it has always done.

How can women better balance their income and expenses? Steffanie Yuen, Head of Hong Kong at Endowus shared four key tips. Women should assess their monthly expenses, and cut down on non-essential expenses to avoid lifestyle creep. They can then build an emergency fund by investing in low-risk and high liquidity assets, and prepare for medium and long-term financial goals through a diversified, low-cost portfolio to reduce risk and achieve more stable profits.

Steffanie Yuen, Endowus’ Head of Hong Kong, outlined the costs associated with investing in stocks and funds. Brokerage platforms may offer ‘zero-commission’ and instead charge a fixed platform fee per transaction, amounting to large costs for investors who trade frequently. Investors also need to be aware of management fees, subscription fees, and conversion fees when investing in mutual funds.

As fixed income markets head into a third consecutive year of losses, investors should assess the likely fallout from higher-for-longer interest rates. Samuel Rhee, co-founder and CIO at Endowus, shared that it is hard to predict where interest rates are heading, and growth, as the only silver lining, is the biggest risk to future returns for equity and bond markets. Therefore, amidst the unpredictability in a growth-scarce environment, quality is what matters. Quality growth in equities and higher-quality credit in the fixed income markets have performed relatively better and are likely to continue to do so.

Endowus, Asia’s leading wealth management platform, is committed to improving the private wealth experience while remaining independent and conflict-free in serving its clients’ best interests. In an interview with Fintech Week, Steffanie Yuen, Head of Hong Kong notes that Endowus will benefit from the HKEX retail fund platform which allows distributors to provide funds to clients at lower entry fees, with greater transparency.

Steffanie Yuen, Head of Hong Kong at Endowus, shared about Hong Kong’s attractiveness as a wealth management hub, emphasising its geographical advantage and role as a gateway to clients in Mainland China. Endowus strategically expanded into Hong Kong with a focus on driving digital adoption in wealth management among family offices.

Samuel Rhee, Chairman and CIO of Endowus, opined that Gen AI will not be used to solve investing problems of timing the market, but instead helps improve the customer experience and operational efficiencies. Most importantly, Gen AI will provide the much-needed customisation that is important for clients within the wealth management industry.

Steffanie Yuen, Head of Hong Kong, discussed the importance of fintech firms in Hong Kong and its potential within the region. Fintechs will be re-inventing and innovating new business models, products, and services with technology, and Hong Kong's position as a key financial hub will be advantageous for these firms. Leveraging innovation, incumbents and fintech players such as Endowus should work to grow the pie together and broaden the ecosystem.

What are trailer fees? Steffanie Yuen, Head of Hong Kong at Endowus, defined common financial jargon and explained the impact of incurring trailer fees. Trailer fees are a commission paid by an investment firm to a distributor, which often leads to a conflict of interest when distributors are incentivised to sell clients products with higher trailer fees. Investors are encouraged to look out for such hidden costs in their investments.

In this op-ed, Samuel Rhee, Chairman and CIO of Endowus unpacked two key factors that prevent individuals from investing: When individuals are afraid of losing money, and when individuals feel like they already lost money due to not buying when the market was up. However, times when markets fall are fewer than people expect, and statistically, financial markets have always skewed positively. Investors are advised to stick to a regular investment plan as the markets will generate returns in the long run.

Generation X, i.e. the sandwich generation often struggle to balance their personal life and the financial needs of dependents. Steffanie Yuen, Endowus’ Head of Hong Kong, shared four key principles for Gen X individuals planning to invest. One should first establish an emergency fund that covers household expenses for 3-6 months, before reviewing their short-term financial goals for the next five years. Subsequently, adopt a core satellite allocation framework that suits one’s long-term plans before considering a more aggressive investment approach.

Why are interest rates getting higher? Steffanie Yuen, Head of Hong Kong at Endowus, defined various macroeconomic terms and shared the pros and cons of a high-interest rate environment for consumers and investors. High interest rates are beneficial for investors but one should always define their financial goals, and account for all financial obligations before making any financial decisions.