Singapore-based Endowus expands to Hong Kong with the launch of its wealth management services in the city.
Endowus officially launches digital wealth management services in Hong Kong, according to a statement.
Investors can build portfolios via the firm’s platform which includes 140 funds across asset classes alongside access to alternatives such as hedge funds, private equity, private credit and private real estate. The platform is backed by financial and tech leaders including UBS, Prosus (Naspers), and Samsung.
No Trailer Fees
According to Endowus, the industry norm of trailer fees or fund distribution commissions in Hong Kong and across Asia could lead to potential misalignment of interests between investors and product distributors «as the latter may be incentivized to offer funds that pay higher commissions over products that are more suitable for the investor».
To this end, Endowus said it is introducing «Hong Kong’s first fee-only, non-commission-based digital wealth management platform» which does not receive any sales commissions and provides 100 percent cashback on trailer fees to clients. Thus far, the firm has returned nearly $5 million in trailer fees paid as cashback and over $15 million in total savings.
«The industry practice of paying trailer fees to distributors, like banks and brokers, goes against the ethos of offering products based on the needs of clients and improving long-term returns for investors,» said Endowus co-founder, chairman and chief investment officer Samuel Rhee.
