Endowus HK Q4 2025 Portfolio Performance Review

Read on to find out how the portfolios performed in the fourth 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 3.4% in Q4 2025, outperforming the broader global equity market, which delivered 3.3%. The Portfolio benefited from its overweight to emerging market equities, which continued to deliver robust performance in Q4. Emerging market equities continued to see strong performance, driven mainly by Korean and Taiwanese technology stocks, and were further supported by the lowering of interest rates by the Fed during the quarter.

Within the Portfolio, Dimensional Emerging Market Large Cap Core Equities Fund was the best performer, ending the quarter up 5.5%. The Fund’s robust performance was bolstered by tailwinds across the emerging market equity landscape. On the other hand, the Dimensional Pacific Basin Small Companies Fund was the weakest performer, delivering 1.9%. The Fund’s overweight to Japan small-cap stocks weighed on relative performance, as the Japan market rally during the quarter was concentrated in large-cap stocks rather than the small-cap stocks favoured by the Fund.

The 100% Fixed Income Portfolio delivered 1.5% in Q4, outperforming the broader global fixed income market, which delivered 0.8%. The Portfolio’s overweight to emerging market bonds contributed to outperformance, as emerging market bonds continued to experience good performance driven by growing investor interest that continued to support flows into the asset class. 

Within the Portfolio, the PIMCO Emerging Markets Bond Fund was the best performer during the quarter, in line with the robust performance of emerging market bonds. The Fund ended the quarter up 3.4%. On the other hand, the weakest performer over the quarter was the Amundi Index Global Aggregate Fund. The Fund passively tracks the global fixed income index and ended the quarter up 0.7%.

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 Q4 2025 on the back of falling rates during the fourth quarter. With the weaker-than-expected U.S. job growth in October pointing to a cooling labour market, and Core CPI falling to an almost five-year low, the FED lowered the federal funds rate twice in Q4 last year. This brought the overnight rate down to 3.50% - 3.75%. As a result, short-term rates fell significantly over the quarter (the 3-month rate fell 31bps), while long-term yields rose slightly, leading to a steepening of the U.S. yield curve. This constructive backdrop for U.S. rates provided tailwinds for money market securities and short-duration bonds. 

CashUp Simple finished the fourth quarter up 1.0%. 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% to 0.4% each month during the quarter. This was supported by a favorable backdrop for money market securities as U.S rates fell. With a low weighted-average maturity and an emphasis on short-term deposits and high-quality money market securities, CashUp Simple remains suitable for investors with more immediate and near-term cash needs.

CashUp Plus generated positive performance in the fourth quarter, adding 1.0%. Both Ping An USD Money Market Fund and Amundi Cash USD Fund generated positive returns over the quarter, supported by the declining U.S. rate environment. The Amundi Cash USD Fund, which takes on a slightly higher credit risk through its exposure to high-quality short-duration bonds, generated roughly positive 0.4% per month over the quarter. Compared to CashUp Simple, CashUp Plus remains more suited towards investors with near to 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 reminded that the CashUp portfolios are not capital protected, and may rise or fall in value.

CashUp Portfolios, primarily exposed to USD market rates, continue to see a trend of declining yields as markets ride through a rate-cut cycle that restarted in late 2025. Investors are encouraged to review their investment goals and assess whether their current CashUp 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 achieved a 1.5% gain in the fourth quarter, resulting in a positive 8.4% total return for the year. The Portfolio outperformed the broader credit market throughout all four quarters. Relative performance in the fourth quarter was notably supported by its allocation to flexible income funds, especially the PIMCO GIS Income Fund, which gained 2.3%, and its exposure to Emerging Market debt via the Neuberger Berman Short Duration Bond Fund.

The IncomeUp Plus Portfolio delivered a 1.6% gain in the fourth quarter, bringing its full-year return to a positive 8.5%, and outperforming the broader credit market. The relative performance in the fourth quarter was also primarily supported by PIMCO GIS Income Fund and its Emerging Markets debt exposure. Its additional exposure to high-yield credit added value marginally. 

The IncomeUp Growth Portfolio gained 2.0%, bringing its full-year total return to a positive 12.7%. The portfolio outperformed the 40-60 benchmark slightly in Q4 due to the outperformance of its fixed income component, which mirrors IncomeUp Steady. The largest detractor was the allocation to the AB Low Volatility Equity Portfolio Fund, as low volatility stocks continued to face challenges in Q4. 

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 gained 1.1% in Q4, underperforming the Morningstar Global Markets Index, which rose 3.3%, and the Morningstar Global Technology Index, which gained 2.5%.

In 2025 overall, the portfolio delivered a positive 21.8%, broadly in line with the global equity index, which rose 22.1% but moderately below the global technology index, which rose 24.9%.

The main detractors to relative performance this quarter were the JPM US Technology Fund and Franklin Technology Fund, which fell by 1.5% and 0.5%, respectively. The reasons ranged from being underweight in semiconductor and equipment (for both funds), as well as stock selection (for example, Robinhood & Snowflake for JPM US Tech and ARM Holdings & Arista Networks for Franklin Templeton).

The best performer this quarter was the BGF Next Generation Technology Fund, which rose 5.7%. The fund benefited from stock selection as four of its five top holdings showed strong performance in Q4 2025. The Fidelity Global Tech Fund, which is our largest weight (30%) in the portfolio, also showed a solid positive 3.2% return in Q4 2025 as the PMs favored large-cap positions, Alphabet, Amazon, and TSMC. 

Note that our portfolio has a more balanced weight of mega-cap tech (51%) and large-cap tech (26%) companies compared to the index, where mega-cap tech accounts for 65% and large-cap tech accounts for 22%, 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 slight gain of 0.2% in Q4 2025. 

In the fourth quarter of 2025, China's equity market entered a consolidation phase, digesting the sharp gains from the previous quarter amidst a complex macroeconomic and geopolitical backdrop. While Q3 was defined by a liquidity-driven rally, Q4 was characterized by volatility and divergence. Geopolitics took center stage early in the quarter with renewed tariff threats from the US, before sentiment stabilized following the APEC summit, where Presidents Xi and Trump agreed to a one-year trade truce. Despite this diplomatic reprieve, domestic headwinds persisted; economic data remained subdued with manufacturing PMI slipping back into contraction territory and the property sector requiring continued policy triage, such as rumored mortgage subsidies, to support sentiment.

The market witnessed a distinct rotation in Q4. The "anti-involution" theme—aimed at curbing destructive price wars—continued to benefit select industries like materials and industrials. However, the broad-based AI and tech euphoria of Q3 faced profit-taking as investors reassessed valuations amid a more hawkish tone from the US Federal Reserve. Capital rotated markedly into defensive sectors, particularly state-owned banks, as investors sought safety against lingering macro uncertainty.

The Endowus China Equity Model Portfolio delivered a flat return of positive 0.2% in Q4 2025, outperforming the Morningstar China All Cap Index, which fell by 7.2%. T. Rowe Price China Evolution Equity Fund was the best-performing constituent fund in the portfolio, delivering a positive 2.2% return. 

Looking ahead, fund managers see the market transitioning from a "rebound" phase to the early stages of a "new cycle" focused on deleveraging and high-quality growth. While the one-year US-China trade truce has removed an immediate geopolitical cliff-edge, allowing investors to refocus on fundamentals, the outlook remains nuanced. Managers are maintaining a selective approach, favoring companies aligned with government priorities—specifically technological self-sufficiency and "new consumption"—while remaining cautious of sectors heavily exposed to competitive intensity and deflationary risks.

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 Q4, the Sustainability - Equities model portfolio outperformed the broader Equity Index, gaining 5.1%, compared to the index, which rose 3.3%. 

The more thematic holdings were the key contributors to relative performance. The Aberdeen Emerging Market SDG Equity Fund was the standout performer, rising 7.8% in Q4, benefiting from strong emerging market tailwinds in October and December despite a challenging November. The BlackRock BGF Sustainable Energy Fund also delivered solid returns, gaining 7.4%, supported by its defensive positioning and exposure to established large-cap clean energy names across utilities and industrials. The two core Schroders holdings provided more moderate but still positive contributions, both ahead of the benchmark.

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: In Q4, the Future Trends model portfolio underperformed the broader Morningstar Global Markets Index, gaining 0.6% compared to the broad equity market, which gained 3.3%. 

The main detractor was the AB Sustainable Global Thematic Fund, which declined 3.3% during the quarter. The Fund was weighed down by a challenging November that saw broad-based weakness in growth-oriented thematic strategies. Other diversified thematic funds also struggled, with Thematics Meta and Neuberger Berman Global Equity Megatrends both posting modest losses. On the other hand, the more sector-specific allocations contributed positively to relative performance. In particular, the AB International Health Care Fund delivered strong returns in Q4, driven by a strong November as healthcare names rallied amid shifting policy sentiment and increased investor appetite for high-quality, profitable healthcare companies. The Schroder ISF Global Climate Change Equity Fund also contributed positively, gaining 4.2%, supported by resilience in established clean energy and utilities holdings.

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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 Q4 2025 Market Update and Outlook – Diversification reaffirms its relevance
• 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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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.

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