Hang Seng Bank has launched an online service that enables its banking clients to invest in mutual funds managed by its asset management affiliate, Hang Seng Investment Management.
The platform, “SimplyFund”, which sits inside Hang Seng Bank’s mobile phone app, aims to eliminate most commonly cited obstacles by beginner investors, according to a statement from the bank.
Hang Seng surveyed 500 people in Hong Kong aged between 18 and 35 and found four main difficulties that keep them fro investing in mutual funds. They include the overwhelming number of funds available in the market, high fund management fees, high investment threshold and the lack of understanding of how mutual funds work.
The new platform aims to address these difficulties by providing investors with simple product information as well as publishing articles focused on improving financial literacy, such as learning more about one’s own risk tolerance, the bank’s mobile app shows.
To make the funds more accessible, the minimum investment amount is HK$1 ($0.13), according to the statement.
The bank also noted that the service was created in collaboration with its younger colleagues.
“In developing the service, we tapped into the knowledge base of our young colleagues who provided valuable input into the investment needs and preferences of their peers,” Margaret Kwan, executive director and head of wealth and personal banking at Hang Seng Bank, said in the statement.
“SimplyFund is the product of a close collaboration between our young banking talent and our digital banking team who worked hand-in-hand on the project to open up the possibilities of long-term wealth management to a broader clientele.”
The launch of the service comes at a time when distributors in Hong Kong are ramping their digital mutual fund distribution channels. Last month, for example, BOCI Securities partnered with Hong Kong-based Magnum Research to provide robo-advisory services to its clients. In a similar move, CMB Wing Lung Bank launched its robo-advisory service, also powered by Magnum.
In January, Hang Seng Bank’s parent HSBC also launched a mobile service in Hong Kong, “FlexInvest”, which is similar to Hang Seng’s SimplyFund. HSBC’s online service allows its banking clients to invest in six bond and equity index funds managed by HSBC Global Asset Management. The platform’s aim is also to make mutual fund investing more accessible, with a minimum investment amount of HK$100.
According to a recent local media report, Hang Seng Bank’s digital channels contributed to around a quarter of its total fund sales this year.
The funds
The funds included in Hang Seng’s SimplyFund include equity, fixed income and balanced funds that are focused on different markets, according to the statement.
Only seven products managed by Hang Seng Investment Management are included in the platform. They are the Hang Seng China New Economy, Global High Growth, Global Bond, Hong Kong Bond, Global Balanced, China Enterprises Index, and the Hang Seng index Fund, according to the app.
While Hang Seng has only included seven products on Simply Life, it noted on its website that investors may access other third-party funds under the mobile app’s “investment funds” section.
The investment funds section of the app also reveals the bank’s “top 10 best-selling products”, which include products managed by Alliance Bernstein, Blackrock, Hang Seng IM, Janus Henderson, JP Morgan Asset Management and UBS Global Asset Management.
Hang Seng Bank’s top 10 best-selling products
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AB FCP I – American Income Portfolio Class AA Shares |
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AB FCP I – Global High Yield Portfolio Class AA Shares |
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Blackrock Global Funds – US Government Mortgage Fund Class A3 |
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Blackrock Global Funds – World Gold Fund Class A2 |
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Hang Seng China New Economy Index Fund Class A |
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Janus Henderson Balanced Fund Class A5m Share |
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JP Morgan China A-Share Opportunities |
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JP Morgan Global Bond |
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UBS (Lux) Equity Fund – China Opportunity |
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UBS (Lux) Key Selection Sicav – China Allocation Opportunity |
Source: Hang Seng Bank mobile app
