How does Endowus assess concentration risk checks? (HK)

Concentration Risk Checks

As part of our assessment framework on whether a transaction is suitable for you, Endowus will also consider concentration risk checks as determined by the below formula: 

Concentration Risk = Total Endowus Investments / Total Liquid Net Worth

  • Total Investments with Endowus = Current Endowus Investments + Investments under consideration
    • Excludes Cash Balance
  • Current Endowus Investments = Confirmed Endowus Investments, Pending, Processing and Assumed investments 
  • Investments under consideration = New investments you are about to make with your Endowus account
  • Total Liquid Net Worth: As provided in your risk profile assessment

Based on a risk-based approach, we will have different concentration risk thresholds for your different investment goals, based on how the product or portfolio risk levels compare against your risk profile and investment objectives, or whether these are Complex Products.

Articles in this section