Endowus Review: Access Institutional-Grade Funds With 100% Commission Rebate And Low Minimum Investment

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Fund investment, as compared with investment vehicles such as stocks or exchange-traded funds (ETFs), may be considered more expensive. There are many types of fund fees charged by traditional banks or securities firms, including subscription fees, management fees, conversion fees, platform fees, among others. But that’s before Endowus, Singapore’s largest online wealth management platform, officially arrived in Hong Kong. The innovative fund investment platform comes with a brand new fund investment mechanism — it’s the first to offer 100% commission rebates to clients (which are usually charged as part of the overall fund management fee). With HK$0 subscription fees or transaction fees, Endowus only charges an all-in Endowus Fee, reducing fund investment costs by up to 70%.

As one of the leading independent wealth management companies in Asia, Endowus manages more than US$5 billion (HK$39 billion) in assets. With a highly experienced investment team and its self-developed “SMART+ Fund Selection Framework”, Endowus allows clients to access top-tier institutional-grade funds with a low minimum investment. Qualified professional investors can also participate in institutional private equity, private placement of bonds, hedge funds, and other alternative investment products.

100% cash rebate on trailer commission with no subscription or transaction fees

Traditional banks and securities firms typically charge various fees for fund investments, including initial subscription fees, management fees, exchange fees, and platform fees, among others. These fees can have a significant negative impact on returns, with higher fees leading to lower returns. Endowus has a different fee structure that sets it apart from traditional banks and securities firms. With only a single all-in Endowus Fee (0.1-0.6%) and no subscription or trading fees, clients can easily understand the transparent charges.

Endowus is also revolutionising the fund investment industry with its commitment to transparency and a client-centric approach. It is the first to comply with the Hong Kong Securities and Futures Commission’s Code of Conduct 10.2 as an independent online financial advisor that offers a 100% commission rebate to clients. Compared with traditional banks and securities firms, investing with Endowus can reduce investment costs by up to 70%, keeping the average fund expenses at around 0.84%. This approach also means that salespeople or relationship managers are not incentivised to favour or promote high-commission fund products just to earn more commission while neglecting clients’ actual investment needs.

Endowus investment fund fee schedule

Cash Management (Cash/Money Market) General Strategies (Fixed Income (Bonds), Equities, Diversified Assets, and Others) Alternative Investments (Private Markets, Hedge Funds)
Single Fund 0.10% of any amount
  • Below HK$20 million, 0.40%
  • HK$20 million to HK$35 million, 0.35%
  • Above HK$35 million, 0.25%
  • Below US$500,000, 0.6%
  • US$500,000 to US$1 million, 0.55%
  • US$1 million to US$3 million, 0.50%
  •  US$3 million to US$5 million, 0.45%
  •  Above US$5 million, 0.40%
Fund Portfolio 0.10% of any amount
  • Below HK$1 million, 0.60%
  • HK$1 million to HK$8 million, 0.50%
  • HK$8 million to HK$20 million, 0.40%
  • HK$20 million to HK$35 million, 0.35%
  • Above HK$35 million, 0.25%
  • Below US$500,000, 0.6%
  • US$500,000 to US$1 million, 0.55%
  • US$1 million to US$3 million, 0.50%
  • US$3 million to US$5 million, 0.45%
  • Above US$5 million, 0.40%

▲Note: The above fees are annualised and based on market survey data as of August 2023.

Goldman Sachs Global Millennials Equity Portfolio fee comparison

Take the Goldman Sachs Global Millennium Equity Portfolio Fund as an example. The total annual investment fee ranges from 1.65% to 3.95% on other online investment platforms or banks, including subscription fees, management fees, and other charges. Endowus only charges a 0.40% all-in fee and rebates 100% of the trailer fees, bringing down the total investment cost to 1%. Coupled with the 100% sales commission rebate, purchasing the same fund product through Endowus is more cost-effective than many “$0 commission” platforms that in effect, only waive subscription fees.

Selected top-tier global funds: access to rare institutional-level fund products

With countless global fund products and varying performances, it is no wonder that choosing the right one can feel like searching for a needle in a haystack. Endowus has gone the extra mile and handpicked more than 200 top-notch products from over 40 leading global fund companies, including BlackRock, Fidelity, Franklin Templeton, Goldman Sachs Asset Management, J.P. Morgan Asset Management, and Allianz Investment, to help clients narrow down the choices and focus on high-quality funds from different regions and industries. 

Endowus has a low entry point for general investors, with minimum investments starting at HK$500 for Hong Kong dollar funds and as low as US$100 for US dollar funds.

Note: SFC requires an online account opening with an initial deposit of HK$10,000 from a local bank. After a successful account opening, clients can withdraw funds at any time.

Endowus also offers private fund products, including private equity, private credit, hedge funds, private real estate, and other investment options from top fund companies such as Bridgewater, Oaktree, KKR, and Carlyle. These products used to be less accessible to Hong Kong investors, but are now available via Endowus to professional investors who have HK$8 million or more in liquid assets. 

Cost savings examples from Endowus’s selected funds

Here are the selected funds with the best annualised performance over the past 5 years on the “Endowus Fund Smart” platform:

Fund Name 5-Year Average Annual Return Fund-level Fees Saved Annually Through Endowus
Fidelity Fund – Global Technology Fund +17.76% 0.85%
BlackRock World Technology Fund +13.64% 0.75%
BlackRock Sustainable Energy Fund +13.51% 0.74%
AB American Growth Portfolio +12.51% 0.79%
Franklin Technology Fund +12.09% 0.75%
BlackRock World Mining Fund +11.65% 0.76%
Harris U.S. Value Equity Fund +11.42% 0.90%
Allianz Global Artificial Intelligence Fund +11.05% 0.88%
Schroder ISF Global Sustainable Growth +11.02% 0.33%
Ninety One Global Natural Resources Fund +10.66% 0.80%

▲ Data as of August 25, 2023 (The performance does not include fee reductions from subscriptions, transactions, and platform fees.)

“Endowus Fund Smart” investment fund selection


Professional fund investment and financial advice with online and offline support

While investors can leverage their investment knowledge and experience to make investment decisions, having professional financial advice as a reference can be valuable. 

Endowus’s professional investment team is led by Mr. Samuel Rhee, former CEO and Chief Investment Officer of Morgan Stanley Investment Management Asia and currently Chairman and Chief Investment Officer of Endowus. He has almost 30 years of institutional investment, asset allocation, and portfolio management experience under his belt. He and his team have developed a “SMART+ Fund Screening Framework” that uses a scientific and standardised process to evaluate fund companies and their management teams, investment frameworks, investment processes, track records, and fees through the 5 steps of “Screen”, “Measure”, “Assess”, “Refine” and “Track”. The team continuously monitors and supervises the performance of fund products, management personnel, investment processes, and concepts to ensure the quality of fund products.

The funds selected through the “SMART+ Fund Screening Framework” cover various investment themes and styles, including public markets, private markets, alternative investments, passive index, quantitative, and active investments, as well as different regions and industry sectors. Clients can diversify their investment opportunities globally with more options.

Clients can purchase individual funds or choose from a selection of multi-fund portfolios carefully designed by the investment research team. These portfolios include “Global,” “Cash Management,” and “Passive Income,” and can be customised to suit long-term wealth accumulation, short-term liquidity management, and passive income generation goals.

Additionally, Endowus offers thematic investment portfolios such as “Global Technology,” “Future Trends,” “Sustainability – Equities,” and “Chinese Equities” that are tailored to capture growth opportunities for specific regions, themes, asset classes, and major trends based on the clients’ market outlook.

Endowus Core portfolios reference

Endowus Satellite portfolios reference

The multi-fund “model portfolios” developed by the Endowus Investment Research Team come with an intelligent rebalancing service. When the portfolio is not aligned with the target asset allocation, it will automatically rebalance the portfolio for clients. In addition, clients can construct their personal fund investment portfolio with the “Endowus Fund Smart” platform with over 200 carefully selected top funds.

In addition to the professional investment team’s meticulously handpicked selection and monitoring of fund performance, Endowus also has an SFC-licensed private wealth management advisory team for free consultation, providing clients with exclusive financial advice and solutions. With online articles on investment and personal finance, weekly reports, live broadcasts, seminars, and events hosted by experts, clients can analyse market trends with ease and receive comprehensive online and offline support.

Robust investment partner’s background: Asia’s largest online wealth management platform

When choosing any investment platform, the company’s background and capability are also important factors to consider. Since its establishment in 2017, Endowus has raised US$95 million in financing from robust investors, including UBS, Citi Ventures, MUFG, EDBI, Lightspeed Venture Partners, Prosus Ventures, Samsung Ventures, SBVA, Singtel Innov8, and Z Venture Capital. In August 2023, Endowus secured a new round of US$35 million in financing from UBS, Citi, MUFG, existing investors, and 4 Asian billionaire families, sustaining the platform’s development.

Endowus is led by a team of top professionals from the finance and technology industries, including experts from Morgan Stanley, Goldman Sachs, UBS, Amazon, Grab, Alibaba, McKinsey, and Fidelity.

Endowus has also been licensed by the Monetary Authority of Singapore and the Securities and Futures Commission of Hong Kong. It holds Type 1 (dealing in securities), Type 4 (advising on securities), and Type 9 (asset management) licences in Hong Kong, with central code BQR225. According to regulations, client funds and assets must be kept separate from Endowus. All client investments are held in custody accounts maintained by various fund companies’ transfer agents, while clients’ uninvested cash balances are held in independent client money accounts at HSBC in Hong Kong, which is regulated by the Hong Kong Monetary Authority.

Under the leadership of a professional management team, Endowus has won numerous industry awards, such as the Singapore Best Digital Wealth Management Platform User Experience Award at the AAA Treasury Intelligence Awards 2023 by The Asset Magazine, the Best of the Best Singapore FinTech Company in Wealth Management 2023 by Asia Asset Management Magazine, the CEO of the Year Award, as well as the Forbes Asia 100 to Watch 2022.

Endowus account opening tutorial: How to register online easily

Investors can complete the account opening and deposit process on the Endowus website or app in just a few minutes. Here are a few simple steps to get started.

  1. Register for an account with an email on the Endowus website or app, set a password, and complete phone number verification.
  2. Fill in personal information and complete an investment risk assessment.
  3. Upload identification documents such as an ID card or passport.
  4. Transfer HK$10,000 or more from a local bank account in compliance with the requirements of the SFC of Hong Kong to activate the account.
  5. Approval can be as quick as 1 business day, and applicants will receive an email notification upon successful application.


Start Experiencing Endowus Now

Summary: An innovative fund investment platform offering low-cost, top-tier products

Whether you are just starting to invest in funds or are currently investing in funds through a bank or securities firm, the latest online wealth management platform, Endowus, is definitely worth considering for those who want to invest in top-notch fund products with reasonable platform fees. The innovative fund platform has introduced a new fund investment mechanism that rebates 100% of trailer fees to clients to reduce investment costs significantly. With a low entry threshold, clients can invest in high-quality fund products meticulously selected by a professional team at a low cost. 

Risk Disclaimer: This content should not be regarded as an invitation, solicitation, invitation, or basis for any investment product or investment decision, nor should it be interpreted as professional advice. Investment in fund products involves risks. Before investing, please fully understand the characteristics and risks of fund products and seek professional advice when necessary.

(Information provided by clients)

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