How are estimated fee savings on Endowus platform calculated? (HK)

The amount of fund fees saved per year by investing via Endowus compared to popular fund platforms or banks can come from from two sources: 

(1) 100% Cashback on trailer fees, or 

(2) the difference in fees between the share-class of the fund on Endowus versus the share-class typically sold to individual investors. 

We’ve provided some illustrations below to show how impactful these two factors can be on your investments. 


Illustration 1 (Savings from Trailer Fee CashBack)

Morgan Stanley Global Brands Fund from Morgan Stanley Investment Management:

At Endowus, we offer the USD A share class (accumulation) which is also the popular share class offered on other platforms. The fund fees (“Ongoing Charges'') per the fund’s website as of January 2023 is 1.84%.

The trailer fee component of this fund is 0.72% p.a. Endowus rebates 100% of this trailer fee as Cashback to you. Hence, after CashBack the fund fees are significantly reduced by close to 40% to 1.12% (1.84% - 0.72% = 1.12%).



Illustration 2 (Savings from accessing institutional clean share class)

Fidelity Global Technology Fund from Fidelity:

A popular USD accumulation share class for this fund that is available for retail investors is share class A. The total expense ratio of this share class is 1.88%* as of April 30 2022. As of mid-December 2022, share class A has over US$900mn assets according to Fidelity’s website. 

At Endowus, we offer the USD Y share class (accumulation) on our platform. This is the clean share class with 0% trailer fee. Its total expense ratio is significantly lower at 1.03%* as of 30 April 2022. Thus, through Endowus, the fund fees are significantly reduced by 0.75% (1.88% - 1.03%), representing a 45% savings.


*Source: Fund’s Key Fact Statement

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