Mox Transforms Investing Experience with Mox Invest: Now Open to All Hong Kong Consumers
Mox is also looking at offering a portfolio-based approach to investments, currently enjoyed exclusively by high-net-worth customers in the private banking space in Hong Kong, as well as core and tactical investment concepts, for all Hong Kong retail banking customers
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Hong Kong, 5 March 2024 – Mox Bank Limited (“Mox”) is reinventing the wealth management and banking experience by making its ground-breaking Mox Invest available to current and new Mox customers in Hong Kong. The 24/7 service brings Mox’s award-winning user experience to wealth management, making it the first Hong Kong virtual bank to offer U.S. and Hong Kong equities and fund trading. Customers can invest in an exclusive fund for as little as HKD1.
Barbaros Uygun, Chief Executive Officer of Mox, said: "Mox Invest makes investing straightforward for first-timers while also catering to sophisticated investors. We are making investing accessible and bringing our well-regarded customer-centric approach to the wealth management industry in Hong Kong. We now welcome all new and existing customers to experience this innovative and affordable investing experience."
With Mox Invest, building a diversified portfolio is fast and straightforward. With a few taps and instant access to information, both first-time and experienced customers can start investing in a fund for as low as HKD1 and buy fractions of U.S. stocks in any amount that the customers want¹.
A new, dollar-based investment experience
As the first bank in Hong Kong to offer U.S. fractional shares trading services, Mox Invest is bringing customers a new dollar-based investment experience. This enables customers to invest in U.S. stocks based on their desired investment amount, without a ‘whole share-based investment’ requirement being a barrier¹.
In addition to a fast-onboarding procedure, Mox Invest customers also enjoy trading commission fees, almost 50% below average market rates²: 0.12% H.K. stock trading fee (minimum HKD30), USD0.01 per share U.S. stock trading commission fee (minimum USD5) and a fixed commission fee of USD1 for U.S. fractional share trades of less than one share.
Diversified portfolio investment experience with fund and equities
With Mox Invest, customers have access via the Mox app to an exclusive fund offered in partnership with Allianz Global Investors Asia Pacific Limited (“AllianzGI”). The fund seeks long-term income and enhanced return by investing directly and indirectly in global interest-bearing securities. Mox customers can invest in the fund with as little as HKD1. The fund, with risk management performed by AllianzGI, may invest in investment grade bonds and up to 5% of net asset value in global equities. As of 31 December 2023, AllianzGI had invested over 90% of the fund assets in fixed income securities and deposits³, with a weighted yield to maturity of 4.44% p.a.⁴, and the fixed income securities invested have an average credit rating of AA⁵.
Earn up to 3% p.a. savings rate and up to an additional HKD1,000 with Mox Invest
On top of Mox’s savings base rate of 1.5% p.a. on any amount, customers can enjoy an additional savings rate of up to 1.5% p.a., taking the total savings rate to up to 3% p.a., on deposits up to HKD3 million, by completing transactions in stocks or net fund transactions⁶ with Mox Invest or making foreign exchange transactions through Mox of just HKD10,000 (or equivalent) in each calendar month⁷.
For example, with a 3% p.a. savings rate, for every HKD100,000, of deposits Mox customers can earn over HKD2,000 more in interest per year⁸ than with the typical savings base rate offered by other banks.
Moreover, from 1 March 2024 to 30 April 2024, the first 20,000 new or existing Mox customers who complete transactions in stocks or net fund transactions of just HKD10,000 (“Eligible Customers”) will earn an additional cash reward of HKD200⁹. Eligible Customers with transaction amounts of HKD50,000 by the end of 30 April 2024 will also earn an additional HKD800 cash reward, totaling a maximum reward of HKD1,000¹⁰.
Upcoming developments for Mox Invest
Launching U.S. and Hong Kong equity and fund trading services is only the first step for Mox Invest. Mox is also looking at a portfolio-based approach to investment, which typically is only available to high-net-worth customers in the private-banking space, and at supporting customers with recommendations tailored to individual’s specific circumstances.
Under this approach, customers will be able to manage their investments with disciplined investment allocation between core and tactical investments. This will bring a whole new investment experience to retail banking customers in Hong Kong.
¹Refers to purchase or sale of a US fractional share, for which a minimum trading commission of USD1 applies (plus applicable regulatory charges), in addition to (or against) the purchase (or sale) price of the share. For more details on fractional shares, refer to the Mox Invest Terms and Conditions. For details of fees and charges, refer to the relevant Fees and Charges section in the Mox app or on the Mox website.
²Compared against the trading commission fees for retail customers of 20 local banks as of 1 March 2024.
³This is for guidance only and not indicative of future allocation.
⁴Weighted yield to maturity refers to the fund’s fixed income securities, time deposits and liquidity (re-scaled to 100%) and is calculated as “weighted yield to maturity from fixed income securities and time deposits” / “total fixed income securities, time deposits and liquidity’s exposure in the fund calculated based on net asset value”. Source: IDS. As of 31 December,2023.
⁵Average Rating refers to a measure of creditworthiness of the underlying securities of the portfolio and this may change over time. The portfolio itself has not been rated by an independent rating agency. For the purpose of this document, the letter rating, which is based on the best rating among S&P, Moody’s and Fitch, is provided to indicate the credit rating of the portfolio’s underlying bonds and generally ranges from AAA (highest) to D (lowest). Unrated bonds are excluded from the calculation, while Cash is treated as an investment with AAA rating. The Credit Quality is provided for informational purposes only.
⁶Net fund transactions refers to net purchases of fund unit(s) (that is, the total amount purchased minus the amount sold is positive). Please see terms and conditions for details.
⁷Savings Base Rate Enhancement Scheme Terms and Conditions apply. Note, additional savings rate is not available in respect of the relevant requirements being completed on, or as at, the last day of a calendar month. Please see terms and conditions for details.
⁸This is calculated based on the difference in interest that can be earned on a HKD100,000 savings deposit at 0.875% p.a. typically offered at other banks and 3% p.a. with the Savings Base Rate Enhancement Scheme for a year.
⁹Mox Invest Cash Reward Promotion Terms and Conditions apply. Note, eligible customers will earn a cash reward of HKD200 only if they achieve transaction amount(s) of at least HKD10,000 by end of day, 30 April 2024. Please see Mox Invest Cash Reward Promotion Terms and Conditions for details.
¹⁰Mox Invest Cash Reward Promotion Terms and Conditions apply.