Endowus, an Asia digital wealth management platform, has launched the Endowus CashUp Portfolios, offering institutional-grade, flexible short-term cash management services for Hong Kong investors.
The Endowus CashUp Portfolios offer investors a single investment product that provides exposure to multiple funds, constructed by the Endowus Investment Office, curating money market and ultra-short duration fixed income funds from global managers, including Amundi, HSBC Asset Management, and Ping An of China Asset Management (Hong Kong).
Steffanie Yuen, head of Hong Kong, Endowus, said “In the current high interest rate environment, with cash and money market instruments yielding at 5% levels, there is no better time to look at comparatively safer, secure ways to optimise one’s savings without sacrificing liquidity. For money market funds that are characterised by a relatively lower level of returns, the compounded impact of fees on your returns is critical to investment success.
By offering access to institutional share class funds and 100% cashback on all trailer commissions, the underlying fund fees on the Endowus digital platform are reduced by as much as 60%, which translates to better net returns for end investors, according to Endowus.
Two types of portfolio
The portfolios come in two options: CashUp Simple and CashUp Plus. CashUp Simple is a lower risk portfolio, constructed with high-quality money market funds with a focus on capital preservation. Its underlying funds have smaller subscription amounts, and lower risk.
CashUp Plus is a portfolio for investors willing to take slightly higher risk for potentially better returns, designed with money market and ultra-short duration bond funds, including US Treasury bills, with liquidity and a weighted average maturity of less than 60 days.
These cash management portfolios have an investment minimum of $100 (HK$800), no lock-up periods, no subscription or withdrawal fees, and no maximum caps.
Investment yields are accrued daily, and investors can subscribe and redeem their portfolios at any time. It is intended as a low-risk and flexible investment solution for clients to take advantage of the current high interest rate environment, while maintaining their savings’ liquidity for cash they may need in the near future.
As of 31 December 2023, the projected net yields of Endowus CashUp Simple and Endowus CashUp Plus range from 5.2 to 5.5% per annum.
Eddy Wong, chief executive officer of Asia, Amundi said, “Investors are demanding more liquid money market solutions to capture attractive yields in the current high-rate market environment.”
Zhuang Yi Goh, head of liquidity sales, Asia, HSBC Asset Management, added: “Our entire range of money market funds is centred on a globally consistent investment framework, and a conservative approach to prioritising risk management.”
Founded in 2017, Endowus has raised a total of $95m 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.
Endowus opened in Hong Kong in May 2023 as the company’s first overseas expansion. Through its “Fund Smart” platform, Endowus offers around 200 funds that were selected by its investment office. These public and private markets funds span from cash and money management, fixed income, equities, multi-asset, hedge funds, private credit, private equity and private real estate.