What will happen to our investments at Endowus if they become bankrupt?

Hi Anon,

This is a great question. The underlying assets of the funds, be it fixed income products, equities or any other asset classes are held in a custodian bank as well, and is in no way owned, or loaned to the fund managers.

This means that it is not sitting on the balance sheet of the fund managers so that even if the fund managers go bankrupt and have to default on their loans, the assets are still safely custodised under the unit holders names.

This is the same arrangement for unit trusts, ETFs in general. Hope that explains.

This is why it's always important to identify where and how your assets are being stored, no matter what platform you choose to use.

With Endowus, your assets are held in a custodian account in your name with the broker. Endowus literally cannot touch it. They provide advice, and they communicate your orders to the broker.