Endowus, a digital wealth adviser based in Hong Kong, has launched its full-service wealth management platform to provide access to best-in-class funds across public markets, private markets, and hedge funds.

The digital platform empowers Hong Kong-based investors – individuals, family offices, charities, and endowments – with better choices, curated advice, and control over their wealth, Endowus says.

It adopts a business model that removes all commissions traditionally paid to banks and private banks and returns them to the client as cash back, thus reducing the cost of investment.

Most traditional and digital players in the industry impose high subscription or transaction fees, which may create an incentive to churn investments, Endowus says. Such trailer commissions may also create a conflict of interest, whereby financial advisers may recommend high-commission products to their clients.

Endowus says its business model mirrors that of developed markets such as Australia, the United Kingdom, Switzerland, parts of the European Union, and the United States, where regulations have already banned such commissions.

The firm aims to promote the model in Hong Kong and Singapore, where it has crossed US$5 billion in group assets.

The launch of the platform includes the release of an enhanced, full-feature bilingual version of an app that provides both digital and in-person investing advice and support.

Endowus is also set to launch its Flagship Portfolios, which are designed to be a one-stop solution for clients seeking diversified and optimized risk-adjusted returns.

Available from May 2024, the portfolios are constructed with different compositions of equity and fixed income according to an investor’s risk profile, with building blocks of mutual funds from leading global fund managers such as Amundi, BlackRock, Dimensional Fund Advisors, and Pimco.