The organisation says its fee-only model, use of digital technology and other features is designed to shake up the world of wealth management, traditionally dominated by firms serving HNW individuals.

Endowus, the Asian wealth platform with more than $5 billion in group assets, has launched the “full-service” version of its business for Hong Kong clients, including a new portfolio offering and enhanced app.

The business, which in August last year raised $35 million in a fresh funding round, announced the latest development at its summit in Hong Kong late last week. Endowus said it wants to spread its business model in the city, and also in Singapore.

The latest launch includes a bilingual version of an Endowus app. The business is also launching new flagship portfolios which will be available from May, Endowus said in a statement. 

Endowus said its fee-only business model mirrors those of developed wealth sectors such as in the UK, Switzerland, parts of the European Union and the US.

App
The enhanced Endowus app, the firm said, provides new capabilities for professional investors in Hong Kong, including instant access to investments in semi-liquid and liquid private equity or private credit funds and hedge funds. 

Professional investors can directly access hedge funds offerings managed by firms such as Millennium, Point72, and Balyasny. Endowus’ private market shelf includes private equity and credit funds from Carlyle, EQT, KKR, and Partners Group.

Tailored for the Hong Kong market, the app has tools for retail investors, including intuitive goal-based investing, “Collections” of curated funds, instant investment top-ups using eDDA (Electronic Direct Debit Authorisation), transfer of fund holdings into Endowus accounts for greater fee savings, and a dual-language interface.

The firm said that in coming quarters it will add features such as the ability to invest in multiple currency funds, automatic currency conversion, financial literacy content in-app, and personalised “next best actions” based on client needs.

New portfolios
The flagship portfolios, offered with discretionary portfolio management services, enable Endowus to retain authority to make buy-and-sell decisions on behalf of the client’s account. 

The approach enables clients to build a strategic, long-term investment plan that fits their investment goals and risk tolerance. Those who want to invest directly in single funds or build their own multi-funds’ portfolios, can use Endowus Fund Smart, an independent mutual funds platform.

“Through our proprietary investment technology, we are not only able to enhance the digital wealth management experience, but also democratise access to investment opportunities that were previously out of reach for many,” Gregory Van, co-founder and CEO of Endowus, said. 

The portfolios are constructed with different blends of equity and fixed income according to an investor’s risk profile, with building blocks of mutual funds from leading global fund managers, Amundi, BlackRock, Dimensional Fund Advisors, and PIMCO.

Endowus’ entities are licensed by the Securities and Futures Commission of Hong Kong and the Monetary Authority of Singapore. Founded in 2017, Endowus has raised a total of $95 million in funding from investors including UBS Next, Citi Ventures, MUFG Innovation Partners, EDBI, Lightspeed Venture Partners, Prosus Ventures, Samsung Ventures, SBVA, Singtel Innov8, and Z Venture Capital.

Other investors include Asian family offices and the founder and employees of Endowus. In 2022, Endowus completed its acquisition of Carret Private, the Asian multi-family office.

(Editor's note: the Endowus business is an example of those aiming to use digital technology and other "building block" approaches to serve the higher end of the retail/mass-affluent market, as well as the more traditional high net worth one. The mass-affluent space in Asia is a large and growing one, and sometimes, so practitioners tell us, an under-exploited field in Europe. See this guest opinion piece for an insight.)