Typically, we consolidate and submit customers’ orders on a daily basis. Please refer to the link here for information on how we process investment orders.
However, in some cases, funds may have limited subscription availability. In such cases, Endowus endeavours to ensure that comparable client’s orders are executed on the best available terms, and in accordance with the time of receipt of interest of such orders, taking into account the following factors:
- the available subscription capacity of the fund;
- the total amount of interest we receive; and
- the interest indicated by each client and the timing that they indicated their interest.
We do so by pro-rating the available subscription capacity, amongst a fixed number of subscribers, based on their indicated interests:
- First, take into account clients’ interests on a first come first served basis.
As a guiding principle, we would generally calculate the number of clients that we can accommodate such that each client allotted subscription capacity, receives at least one third of their requested interest (which equates to roughly 35%), while also meeting the minimum investment amount for the fund (in such case the allocated percentage for small order may be higher than 35%).
- Next, the allotted clients are invited to subscribe for their allotted capacity.
Should a client ultimately decide not to follow up with the subscription, we may decide to re-allocate the allotted capacity to other allotted clients, on a pro-rated basis, or to offer the client’s share to the next available client, again based on the timing that the client indicated an interest.
Endowus operates both in Singapore and Hong Kong (albeit separate legal entities), and accordingly there may be funds which are available to both Singapore and Hong Kong clients. In such cases, we will aggregate interests from both Singapore and Hong Kong, and apply the same methodology collectively.