Endowus January 2026 Portfolio Performance Review

Endowus Core-Flagship Cash/SRS Portfolio

The 100% Equity Portfolio rose 2.3% in January, outperforming the broader equity benchmark by 0.5%.

• Financial markets started 2026 with heightened volatility, driven by geopolitical tensions and a risk on investor sentiment. Amidst the volatility, global equities extended their gains, supported by resilient US economic data and continued enthusiasm around AI. Overall, global equities ended January up 1.8%.
• On the back of the growth in equities in January, the Flagship Cash/SRS 100% Equity Portfolio delivered 2.3%, outperforming the global equity benchmark during the month. The Portfolio benefitted from its structural overweight to value and small cap stocks, both of which outperformed their growth and large cap counterparts respectively. Additionally, the Portfolio’s overweight to emerging market equities also contributed to its outperformance.
• Within the Portfolio, the top performer was the Amundi Core MSCI Emerging Markets Fund, which gained 7.5% over the month. The Fund, which passively tracks the emerging market equities index, performed strongly as the strong growth of emerging market equities continued into the new year. This was driven by a weakening US dollar and ongoing optimism around AI-related stocks in Korea and Taiwan. On the other hand, the iShares US Index Fund (IE) S&P 500 Fund was the weakest performer, ending the month down 0.6%. The Fund, which passively tracks the S&P 500 index, lagged as US equities underperformed their global peers, as concerns over the Fed’s independence weighed on investor sentiment. Moreover, the depreciation of USD against SGD during the month further weighed on the Fund’s returns.

The 100% Fixed Income Portfolio gained 0.2% in January, outperforming the broader fixed income market which delivered flat performance.

• While equities benefitted from the risk on sentiment in January, global bonds saw more muted performance during the month. Better than expected economic data in the US led the Fed to keep its federal funds rate unchanged at the 3.5%-3.75% range, ultimately causing shorter term yields to rise. Longer term yields also rose slightly, as concerns about the Fed’s ability to control inflation continue to loom. On the other hand, credit saw good performance as the positive US economic data led to a tightening of credit spreads. Overall, global bonds ended the month with flat returns.
• The Flagship 100% Fixed Income Portfolio rose by 0.2% in January and outperformed the broader fixed income market, driven by its overweight to securitised and emerging market bonds which saw good performance during the month.
• Within the Portfolio, the PIMCO GIS Emerging Markets Bond Fund was the best performer in January, delivering 0.9%. The Fund benefitted from the robust performance of emerging market bonds during the month. On the other hand, the iShares Emerging Markets Government Bond Index Fund was the weakest performer, ending the month down 0.8%. While the Fund is invested in emerging market bonds which performed well, its performance was weighed down by the USD depreciation against SGD during the month, as its underlying bonds are USD denominated and not SGD hedged.

Endowus Core-Flagship CPF Portfolio

The 100% Equity Portfolio gained 2.0% in January, outperforming the global equity benchmark by 0.2%.

• Similar to the Flagship Cash/SRS 100% Equity Portfolio, the Flagship CPF 100% Equity Portfolio benefitted from its overweight to small cap, value and emerging market stocks. An overweight to these areas led to the Portfolio’s outperformance over the global equity benchmark during the month.
• Within the Portfolio, the Schroder Global Emerging Markets Opportunities Fund ended the month up 7.3%, and was the strongest performing fund. The Fund’s strong performance came on the back of the robust performance of emerging market equities, as well as its stock selection. On the other hand, the Amundi Prime USA Fund was the weakest performer, ending the month down 0.2%. The Fund lagged as US equities underperformed their global peers, as concerns over the Fed’s independence weighed on investor sentiment. Moreover, the depreciation of USD against SGD during the month further weighed on the Fund’s returns.

The 100% Fixed Income Portfolio rose 0.2% in January, outperforming the global fixed income market by 0.2%.

• The Flagship CPF 100% Fixed Income Portfolio outperformed the global fixed income market due to its overweight to Singapore bonds, which continue to deliver outperformance over global peers.
• Within the portfolio, the Eastspring Singapore Select Bond Fund was the best performing fund, ending the month up 0.6%. On the other hand, the Amundi Index Global Aggregate Fund, which passively tracks the global bond index, was the weakest performer, ending the month up 0.1%. Overall, January was a favourable month for the Portfolio, as all of its underlying fixed income funds ended the month in positive territory and outperformed the global fixed income benchmark.

Endowus Income Portfolios

The Stable Income Portfolio delivered 0.2% return in January, performing in line with the broader credit market. 

• Flexible income funds contributed to relative performance, led by PIMCO GIS Income Fund. JPM Income Fund was a detractor in January. 
• The Portfolio’s allocation to emerging markets debt contributed strongly to relative performance as well. However, this was offset by the more sluggish performance generated by the Asian bond funds. 

The Higher Income Portfolio delivered a strong 0.9% return in January, meaningfully outperforming the 20-80 benchmark.

• The fixed income portion of the Portfolio outperformed the overall credit market, driven by its allocation to PIMCO GIS Income Fund, its emerging markets exposure and tilt to high yield bonds. 
• The equity portion of the Portfolio outperformed the global equity market meaningfully as the market’s performance broadened out and rotated away from growth names. The Portfolio’s tilt to high dividend and value style in developed markets boosted the relative performance. It also benefited from its overweight exposure to emerging markets. 

The Future Income Portfolio gained 0.6% in January, slightly underperforming the 40-60 benchmark. 

• Its fixed income component outperformed the broader credit market with reasons similar to those of Stable Income.
• The equity portion underperformed the global equity market, driven by its slightly overweight exposure to low volatility stocks in developed markets equities. The underperformance was partially offset by the portfolio’s tilt to value and small cap stocks which outperformed the overall market in January. 

Latest current target payout update:

In September 2025, we revised downwards the current target payout of Higher Income Portfolio to 5-6%. The recent increase in hedging cost between SGD and USD pair has caused certain fund managers to lower the payout, impacting the overall payout levels across all three income portfolios. This in particular has caused Higher Income Portfolio’s payout yield to dip below the prior target payout range. In light of the prevailing interest rate cycle, it is only prudent to lower the current target payout range of the Higher Income Portfolio. 

Investment grade flexible income funds continue to be able to generate income that’s akin to high yield funds in the current environment where high yield spreads are particularly tight. In light of this, we are comfortable with the Higher Income Portfolio generating an income level that is similar to that of Stable Income. It is important to note that the Higher Income Portfolio has delivered better growth in terms of total return than Stable Income, with the prudent addition of credit and equity risk. This means that after receiving the income, investors in the Higher Income Portfolio would have seen a stronger increase in their capital year-to-date. 

We are monitoring and will take actions to improve the portfolios if we believe there are better building blocks/ is room to optimise the portfolios further. 

Endowus Cash Smart Portfolios

Cash Smart Secure continued to generate positive returns in January. 

• The Cash Smart Secure Portfolio maintained its stable return profile, posting a 0.1% gain in January. 
• Both the underlying funds, the Fullerton SGD Cash Fund and the LionGlobal SGD Enhanced Liquidity Fund, returned 0.2% and 0.1% respectively. 

Cash Smart Enhanced continued to provide stable returns in January.

• Cash Smart Enhanced generated a return of 0.2% during the month, slightly higher than Cash Smart Secure’s return as it has slightly higher risk.
• The Portfolio’s returns were boosted by its allocation to short duration bonds via the United SGD Fund, which delivered 0.2% during the month.

Cash Smart Ultra generated positive returns in January, though it did not perform according to its risk level.

• Cash Smart Ultra delivered a return of 0.2% in January.
• Despite having the highest risk due to its higher allocation to short duration bonds, the Portfolio's underlying short duration bond funds saw mixed performance, which ultimately did not boost the Portfolio’s performance. 
• Funds such as PIMCO Low Duration Income and United SGD saw better performance, while Lion Global Short Duration Bond Fund and Fullerton Short Term Interest Rate Fund saw more muted performance. 

Please note: There has been a change in the benchmark due to the discontinuation of the 3-month SIBOR. The new benchmarks feature higher returns than SIBOR, but our Cash Smart Portfolios have tended to outperform them across various periods.

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