Endowus HK Q1 2025 Portfolios Performance Review

For your core allocation needs, the launch of Endowus Flagship Portfolios in Hong Kong offers our most popular investment portfolio solution from Singapore. As part of our Discretionary Portfolio Management (DPM) offering, the Flagship Portfolios provide institutional-grade portfolio construction, ongoing monitoring, and updates by the Endowus Investment Office. This ensures that investors can benefit from professional management and timely adjustments to their portfolios.

Our Investment Office has curated and optimised other model portfolios using Best-In-Class Funds as building blocks for various investor needs. Investors in Hong Kong can use these pre-populated templates as a starting point for their portfolios; they can take the template as it is, or make changes to suit their preferences and needs.

Read on to find out how the portfolios performed in the first quarter of 2025.

Endowus Flagship Portfolios 

About the Endowus Flagship Portfolios: The Endowus Flagship Portfolios are a one-stop solution to globally diversified portfolios, tailored for varying risk profiles and suitable for your core, long-term wealth accumulation. 

Key performance highlights: 

The Endowus Flagship Very Aggressive 100% Equity Portfolio fell by -1.4% in Q1 2025, outperforming the broader global equity markets. The portfolio's structural overweight to value stocks and emerging markets supported performance, but this was partially offset by a tilt toward smaller-cap companies, which underperformed during the quarter. Value stocks outpaced their growth counterparts as global investors shifted away from highly valued U.S. technology stocks.

The iShares US Index Fund was the weakest performer in the equity sleeve, reflecting the underperformance of U.S. equities amid concerns over tariffs and investor reassessments of AI growth prospects following the release of China’s Deepseek. Conversely, the Amundi Index MSCI Emerging Markets Fund and Dimensional Emerging Markets Large Cap Core Equity Fund delivered the strongest returns, benefiting from the robust performance of emerging market equities. Chinese and Korean equities led this rally, bolstered by favorable macroeconomic conditions and investor sentiment.

The Very Conservative 100% Fixed Income Portfolio outperformed the Bloomberg Global Aggregate Index by approximately 0.6 percentage points, rising 1.8% for the quarter. The portfolio's gains were driven by allocations to securitized bonds through the PIMCO GIS Income Fund and emerging market debt via the PIMCO GIS Emerging Market Bonds Fund. The PIMCO GIS Income Fund was the top performer in the fixed income sleeve, returning 3.3%, with most of its gains occurring in the first two months of the quarter. It was closely followed by the PIMCO GIS Emerging Market Bonds Fund, which returned 3.1%, supported by a weaker U.S. dollar that boosted demand for emerging market debt.

Other funds in the portfolio either matched or slightly exceeded their respective benchmarks, showcasing consistent performance across its diversified holdings. 

Read more: Introducing Flagship Portfolios

Endowus CashUp model portfolios 

About the Endowus CashUp Portfolios: Designed for short-term cash management, they are built using high-quality money market funds or ultra-short duration fixed-income funds.

Key performance highlights: The CashUp Portfolios delivered attractive, positive returns in Q1 2025.

CashUp Simple closed the quarter up 1.09%. This was supported by consistent monthly returns of approximately 0.3% to 0.4% throughout the quarter, with strong contributions from the underlying funds (Ping An USD Money Market Fund and HSBC Global Money US Dollar).

CashUp Plus also generated positive performance, with a return of 1.09% in 2025. Similar to CashUp Simple, the underlying funds (Ping An USD Money Market Fund and Amundi Cash USD Fund) delivered strong, consistent contributions of approximately 0.3% to 0.4% throughout the quarter.

Our underlying fund managers employ a dynamic management approach aimed at minimising capital erosion while striving to generate returns comparable to prevailing money market rates. 

Lastly, investors are reminded that the CashUp Portfolios, along with any other investment products on Endowus, are not capital protected and their value may rise and fall with market movements.

CashUp Portfolios, primarily exposed to USD market rates, are seeing declining projected yields as markets enter a rate-cut cycle. Also, CashUp Plus has overtaken Simple in terms of projected yield, given the varying levels of duration and credit risk across the Portfolios. Investors are encouraged to review their investment goals and assess whether their current Cash Smart Portfolio remains aligned with their needs.

Read more: Introducing the newly launched CashUp Portfolios

Endowus IncomeUp model portfolios

About the Endowus IncomeUp model portfolios: The three IncomeUp model portfolios meet different income and capital preservation or growth needs for investors at different life stages.

Key performance highlights: 

The IncomeUp Steady Portfolio gained 2.4% in the first quarter, outperforming the broader credit market. Most of the positive returns were registered in the first two months of the year, while in March, the portfolio managed to be relatively resilient despite the jittery in the market due to tariff and recession concerns. Most of the underlying funds contributed to relative outperformance, with PIMCO GIS Income Fund being the best performer, returning 3.3% during the quarter. 

The IncomeUp Plus model portfolio delivered positive returns in the first quarter, gaining 2.0% and outperforming the global credit market. The portfolio’s allocation to high quality flexible income funds added to relative performance, which is partially offset by its allocation to the high yield market, which experienced more weakness during March. 

The IncomeUp Growth model outperformed the 40-60 Equity - Fixed Income Composite Index. The fixed income component mirrored IncomeUp Steady and outperformed the credit market. Its equity component underperformed the global equities market very slightly primarily due to security selection. Its overweight exposure to emerging markets and European equities was a positive on the other hand. 

Read more: Introducing Endowus IncomeUp Portfolios

Endowus Satellite model portfolios

The Satellite model portfolios are designed to supplement the Core portfolios, and offer Hong Kong investors specific exposure to opportunities in selected regions, themes, asset classes, and trends. In taking a core-satellite approach, most investors should allocate the bulk of their asset allocation to the Core portfolios. 

China Equities model portfolio 

About the China Equity model portfolio: The China equity model portfolio aims to provide investors with holistic exposure to the China stock market, and consists of five Best-In-Class China equity funds.

Key performance highlights: 

The China Equity model portfolio posted a gain of 3.8% in Q1 2025. 

The market, especially tech and growth stocks, experienced a significant boost at the end of January and throughout February. This was driven by the emergence of DeepSeek, which renewed confidence in China’s innovation capabilities. Additionally, President Xi's meeting with private tech entrepreneurs was seen by investors as a positive, pro-business move. The market also performed better than other global markets, with the impact of US tariffs being less severe than expected and positive economic indicators, like manufacturing growth, keeping investors optimistic through March.

The benchmark (Morningstar China All Cap Index) outperformed due to its high concentration in tech stocks such as Tencent and Alibaba, with weights of 14% and 10% respectively, which benefited from these market tailwinds. In contrast, our portfolio lagged due to its more cautious allocation strategy, avoiding large bets exceeding 10% in a single stock. Regardless, our portfolio performed better than other common market indices like CSI 300 (-1.0% for Q1 2025 in USD terms).

Read more: Introducing the China Equities model portfolio: capture Greater China’s high growth potential

Sustainability - Equities model portfolio 

About the Sustainability - Equities model portfolio: It offers access to ESG (environmental, social, and governance), sustainable, and climate equity funds so that investors can contribute to a better, sustainable future.

Key performance highlights: In the first quarter of 2025, the Sustainability - Equities model portfolio generated negative returns. All the funds in the model portfolio performed below the non-ESG benchmark. The thematic focus BGF Sustainable Energy Fund was the largest detractor during this quarter. However, the performance was partially offset by the exposure to emerging markets through the abrdn Emerging Markets SDG Equity Fund, which delivered stronger returns over the quarter.

Global Technology model portfolio 

About the Global Technology model portfolio: It aims to provide access to the most innovative technology and technology-related companies around the world, across various market capitalisations and sectors. The Technology model portfolio closed the year with a gain of nearly 46%.  

Key performance highlights: The Technology model portfolio delivered a loss of -11.2% in Q1 2025, in line with the broader technology market index.

The first quarter presented challenges for the tech sector, driven by a mix of factors. Uncertainty surrounding US tariffs, potential spending cuts by the Department of Government Efficiency, rising inflation, and weakening consumer confidence all contributed to a cautious market outlook. Additionally, continued concerns about the sustainability of capital expenditure in artificial intelligence (AI) further dampened investor sentiment. These factors led to a "risk-off" approach across various assets, triggering selloffs in technology. Our portfolio was directly impacted by these market headwinds as the technology sector as a whole struggled. 

Read more: Introducing the Global Technology model portfolio: ride the wave of tech innovation

Future Trends model portfolio 

About the Future Trends model portfolio: It is a 100% equities portfolio made up of six Best-In-Class funds spanning the major themes of healthcare, technology, industrials, and more. It caters to investors seeking exposure to high-growth firms.

Key performance highlights: The portfolio started 2025 on a bright note, with most funds outperforming the index in January amidst strong performances from Thematics Meta and AB International Healthcare. However, with the onset of volatility driven by President Trump’s tariff program, almost all of the underlying funds reversed their gains and ended the quarter in negative territory.

AB Sustainable Global Thematic and Allianz Thematica were the main detractors for the quarter. With a focus on growth-oriented companies, both funds typically have a higher beta to equities and were thus more heavily impacted by the market drawdown experience in February and March. 

On the other hand, the AB International Healthcare Fund managed to generate a positive return over the quarter. Policy uncertainty in the US remains an overhang for the sector; however the sector’s defensiveness and relatively insulated position from geopolitical issues allowed the sector and Fund to perform well.   

<divider><divider>

How to access portfolios on Endowus Hong Kong 

With Endowus, you can plan and manage your money with institutional-grade portfolios that have been curated by our Investment Office, offering globally diversified exposure with Best-in-Class underlying funds as building blocks.

You can use these pre-populated portfolio templates as a starting point for your portfolio. You can either take the template as it is, or tweak the portfolio allocations to suit your personal risk appetite, preference, and goals.

Alternatively, on the Fund Smart platform, you can build your own do-it-yourself (DIY) portfolios from scratch, through Endowus’ proprietary portfolio creation tool. To learn more about Fund Smart, refer to this article.

If you are new to Endowus in Hong Kong, you can get started by opening an account with us.

Already have an account with Endowus HK? Here are a few simple steps to start using Fund Smart:

• Login to your Endowus account
• Click on “Invest |  Redeem”
• Click on “Add Goal”, and then follow the instructions to select the fund or portfolio of your choice, based on your investment horizon and objective.

Read more: 

• 2025 market outlook: Interest rates, Trump, and AI
• Introducing the Endowus HK team
• Choosing Endowus when investing in Hong Kong

<divider><divider>

Risk Warnings

Investment involves risk. Past performance is not an indicator nor a guarantee of future performance or returns. Projected performance or returns is not guaranteed to materialise. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund. 

Risk related to discretionary management . As Flagship Portfolios are provided under discretionary services, Endowus will manage the assets under the portfolio subject to compliance with the terms and conditions of the DPM Services Agreement and on a fully discretionary basis; you will not have any role or right to make investment decisions, except for making contributions or withdrawals from the portfolio; it would not be mandatory for Endowus to provide the underlying fund prospectuses or other fund information to you for each and every investment decision made on behalf of you.  You should exercise caution before investing in discretionary managed portfolios. 

Flagship Portfolio may contain professional-investors only fund(s) and/or “Complex Product”.  In general, Professional-investors only funds are funds that have not been authorised, nor have the offering documents been reviewed by the SFC.  “Complex Products” (as defined by the Securities and Futures Commission, the “SFC”) refer to investment products (e.g. funds) whose terms, features and risks are not reasonably likely to be understood by retail investors because of their complex structures.  Professional-investor only funds and Complex Product in general may have higher risk than other retail and non-complex products.  Past performance is not indicative of future performance. All investments involve risks (including the possibility of loss of the capital invested) and the price of fund units may go up as well as down. This fund may invest in financial derivatives which may involve additional risks (e.g. market, counterparty, liquidity, leverage and volatility risks) and lead to higher volatility. In adverse situations, the fund may suffer significant losses. This fund is not principal protected. In the worst-case scenario, you may lose the entire invested amount. Do not invest in a complex product unless you understand and are willing to assume the risks associated with it, including (in some cases) the risk that you may lose more than the invested amount. Please refer to the “Important Information About Funds” for details of the risks involved.  If you are in any doubt, you should clarify with us or seek independent professional advice.

General risk warnings relating to collective investment schemes 

Before making an investment decision, you are reminded to refer to the relevant prospectus/ offering document for specific risk considerations and related fees and charges. Funds are not a bank deposit and not capital guaranteed, and is subject to investment risks, including the possible loss of the principal amount invested. Some of the funds also involve derivatives. Do not invest in them unless you fully understand and are willing to assume the risks associated with them.

Opinions

Whilst Endowus HK Limited (“Endowus”) has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies or typographical errors.  Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endowus HK Limited (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus HK Limited, its affiliates, directors, employees, representatives or agents have given any consideration to, nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.

No invitation or solicitation

Nothing contained in this article should be construed as a solicitation, an offer to buy or sale, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction in any jurisdiction in which such solicitation, offer to buy or sale would be unlawful under the securities laws in such jurisdiction. No information included in this article is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any advisory product or service; or an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, financial product, or instrument; or to participate in any particular trading strategy. Investors should seek independent financial and tax advice before making any investment decision.

Product Risk Rating: Please note that any product risk rating (the “PRR”) provided by us is an internal rating assigned based on our product risk assessment model, and is for your reference only. The PRR is subject to change from time to time. The PRR does not take into account your individual circumstances, objectives or needs and should not be regarded as advice or recommendation to purchase, hold or sell any fund or make any other investment decisions. Accordingly, you should not solely rely on the PRR in making your investment decision in the relevant Fund.

This article  has not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong.