Endowus HK Q3 2025 Portfolios Performance Review

Read on to find out how the portfolios performed in the third 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 100% Equity Portfolio rose by 8.0% in Q3 2025, outperforming the broader global equity market which delivered 7.6%. The portfolio’s overweight to emerging market equities contributed to the outperformance, as emerging market equities outperformed their developed market peers this quarter. The outperformance in emerging market equities stemmed from the robust rise in Chinese stocks, a rally ignited by progress in US-China trade talks and a boost in AI spend by Chinese big tech companies. 

Within the portfolio, the Dimensional Pacific Basin Small Companies Fund was the best performer, ending the quarter up 11.2%. The Fund’s robust performance was driven by its overweight to Taiwan equities, as well as its stock selection. On the other hand, the Dimensional Global Core Equity Fund was the weakest performer, delivering 6.7% this quarter. This was due to the Fund’s overweight to value stocks, which underperformed their growth counterparts in Q3.

The 100% Fixed Income Portfolio delivered 2.2% in Q3, outperforming the broader global fixed income market which delivered 1.2%. The outperformance was driven by the Portfolio’s overweight to emerging market bonds, which saw robust performance due to the Fed’s rate cut in September, growing expectations for further near term cuts, as well as improving economic fundamentals of emerging market countries 

Within the Portfolio, the PIMCO Emerging Markets Bond Fund was the best performer, in line with the robust performance of emerging market bonds. The Fund ended the quarter up 5.2%. On the other hand, the weakest performer was the iShares Global Aggregate 1-5 year bond index Fund, which ended the quarter delivering 1.1%. The Fund’s shorter duration weighed on performance, as longer duration bond funds benefited more from the rate cut during the quarter.

Read more: Introducing Flagship Portfolios

Endowus CashUp model portfolios 

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

Key performance highlights: The CashUp portfolios delivered positive returns in Q3 2025 on the back of falling rates and short-term yields, which continued to be a central theme during the third quarter. This rally was driven by increased market expectations for Fed rate cuts, especially post the weaker US job reports in July and August. At the September FOMC, the Fed lowered the federal funds rate by 25bps to 4.00- 4.25% with the median dot plot suggesting about two more rate cuts for the remainder of 2025. These developments provided positive tailwinds for money market and short duration fixed income. 

CashUp Simple finished the third quarter up 1.1%. The two underlying funds in the portfolio, Ping An USD Money Market Fund and HSBC Global Money US Dollar, generated positive, stable returns of between +0.3% - +0.4% each month during the quarter, providing a steady growth in portfolio value. This was supported by a favorable backdrop where U.S rates continued to fall. With its low weighted average maturity and emphasis on short-term deposits and high-quality money market securities, CashUp Simple is suitable for investors who have more immediate and near-term cash needs.

CashUp Plus also generated positive performance in the third quarter, adding 1.1%. Similarly, falling U.S rates and short-term yields in July through September provided tailwinds for money market and short duration bonds. Both Ping An USD Money Market Fund and Amundi Cash USD Fund generated steady, positive returns over the quarter, supported by the declining rate environment. The Amundi Cash USD Fund, which takes on a slightly added risk through its higher exposure to high quality short duration bonds, generated an average of +0.4% per month over the quarter. With a higher portfolio duration, CashUp Plus is more suited towards investors with near-term and mid-term cash needs.

Our CashUp portfolios aim to generate returns comparable to prevailing money market rates while minimising downside capital risks and maintaining a high level of liquidity. Investors are to be reminded that the CashUp portfolios are not capital protected, and may rise or fall in value.

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 CashUp 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 2.2% in the third quarter, bringing its YTD performance to 6.8% and outperforming the broader credit market. Overall, the portfolio benefited from its allocation to emerging market bonds and Asian bonds, as both asset classes continued to deliver strong returns in Q3, on the back of improved sentiment towards China. Performance of the flexible fixed income funds were mixed during the quarter and was overall in line with the market. Most of the portfolio’s outperformance was generated in August. In September, the Portfolio underperformed the credit market, with the largest detractor being the JPM Income Fund.

The IncomeUp Plus Portfolio gained 2.3% in the third quarter, bringing its YTD performance to 6.9% and outperforming the broader credit market. In addition to reasons similar to the IncomeUp Steady Portfolio, the IncomeUp Plus Portfolio’s additional tilt to the high yield market contributed further to its relative performance. High coupon and spreads tightening in Q3 supported high yield markets’ strong performance.

The IncomeUp Growth Portfolio delivered 4.0% return, bringing its YTD performance to 10.5%. The portfolio underperformed the 40-60 benchmark slightly in Q3 due to underperformance of its equity component. Its allocation to the AB Low Volatility Equity Portfolio Fund was the largest detractor, as low volatility stocks struggled during the risk-on environment in Q3. As for the fixed income component, it mirrors the IncomeUp Steady Portfolio.

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. 

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. 

Key performance highlights: The Global Technology model portfolio delivered +9.7% in Q3, outperforming the Morningstar Global Markets Index which delivered 7.6%, but underperforming the Morningstar Global Technology Index which delivered 11.9%.

While the Portfolio delivered a strong absolute performance in Q3 and outperformed global equities, it trailed the technology index after its outperformance in Q2.

The main detractors to relative performance this quarter were the JPM US Technology Fund (+8.7%), Fidelity Global Technology Fund (+9.0%), Franklin Technology Fund (+9.8%), BGF World Technology Fund (+10.1%), and the Janus Henderson Global Tech Leaders Fund (+10.3%). The reasons ranged from being underweight tech hardware and peripherals (Franklin Technology Fund and BGF World Technology Fund), overweight small caps and hence underweight Mag 7 (JPM US Technology Fund and Fidelity Global Technology Fund), and being more value focused (Fidelity Global Technology Fund). The BGF Next Gen Fund Technology Fund was the strongest performer in Q3 (+14.0%)

Funds including the Fidelity Global Technology Fund and the Janus Henderson Tech Leaders Fund have shown outperformance in 1H25 and thus on a YTD basis show comparable performance to the index despite its 3Q underperformance.

Note our portfolio has a more balanced weight of mega cap tech (44%) and large cap tech (30%) companies compared to the index, where mega cap tech accounts for 70% and large cap tech accounts for 24% respectively.

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

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 19.6% in Q3 2025. 

In the third quarter of 2025, China's equity market experienced a sharp rebound, outperforming global peers and reversing its prior laggard status. The rally was driven by policy support for domestic chipmakers, alongside an acceleration in AI spend and product rollout from some of China’s biggest tech names. More broadly, easing trade tensions with the US, and hopes that China’s ‘anti-involution’ policy would shore up the domestic economy, supported the wider market. Liquidity played a pivotal role, with retail investors reallocating savings from low-yield deposits into equities, particularly targeting Hong Kong-listed banks and leading tech companies such as Alibaba, which saw dramatic gains.

The Endowus China Equity Model Portfolio delivered an extraordinary +19.6% return in Q3 2025, slightly underperforming its benchmark, the Morningstar China All Cap Index, which returned +20.0%. Allianz All China Equity Fund was the best-performing constituent fund in the portfolio and delivered over +29.0% return.

Despite upbeat market sentiment and gains led by AI, chip, and green economy themes, economic headwinds such as deflation risks, weak manufacturing, and a struggling property sector persisted. While valuations expanded significantly, concerns about a potential market bubble and sustainability of gains remain, as earnings growth overall has been modest. Fund managers noted optimism but maintained caution given ongoing macroeconomic challenges and policy uncertainties. Overall, Q3 reflected renewed confidence in Chinese equities, supported by reform momentum but tempered by structural economic issues.

We are hosting a webinar on 3 November to go through the recommended changes to the China Portfolio. Watch here. 

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 Q3, the Sustainability - Equities model portfolio underperformed the broader Equity Index. The main detractor was the Schroder ISF Global Sustainable Growth Fund. On the other hand, the more thematic funds contributed to relative performance. In particular, the BlackRock BGF Sustainable Energy Fund delivered 14.4% performance in Q3, helped by strong Q2 earning results particularly among companies benefiting from power market dynamics, grid investment, and data centre growth.

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 generated positive performance in the third quarter, although performance was below the benchmark. Schroder Global Climate Change was the best performer, while Blackrock BGF Nutrition and Thematics Meta detracted from performance.

The Schroder Global Climate Change Fund built on its strong performance in Q2 with another solid performance in Q3. The Fund benefited from an overall bullish sentiment and also specifically from the continued rebound in the clean energy segment.     

However, Thematics Meta was slightly negative during the quarter, having performed well in the previous quarter. While the AI and Robotics sub-theme was positive, performance was dragged down by negative returns from the Subscription Economy and Healthcare sub-themes. Lastly, Blackrock BGF Nutrition was also negative for the quarter, due to the continued weakness in the agriculture sector and also stock selection. With the Fund poised to close, we will be replacing the Fund with another thematic fund - the NB Global Equity Megatrends Fund. The NB Global Equity Megatrends Fund is a high conviction, global all-cap equity portfolio of 20 to 30 companies supported by multiple long-term, global, secular shifts.

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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:

• Log in 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: 

• Endowus Q3 2025 Market Update and Outlook — Stocks Soar, Gold Glitters
• Is 60/40 portfolio the future?
• Introducing the Endowus HK team
• Choosing Endowus when investing in Hong Kong

‍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.

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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.