How does Endowus assess concentration risk checks? (HK)
Updated
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.