Our Investment Office has designed the asset allocation, selected the funds, and optimised the fund allocation of our Endowus model portfolios. 

The Endowus Global model portfolios are globally diversified and optimised for each level of risk (6 for you to select from).  We believe that they should form the core allocation of your investment portfolio for the long-term. 

We advise using Satellite portfolios as a way to complement your existing core investments. If there is additional exposure to certain asset classes, geographies, sectors, themes or factors, outside of our Satellite portfolios, you can also select to subscribe for additional thematic funds or DIY portfolios via Fund Smart. 

If you are holding certain funds on other platforms, you can also choose to replicate this exposure on Fund Smart. It is likely that by getting access to institutional share classes and/or receiving 100% trailer fee rebates from the same funds, you will be able to lower your investment cost significantly.

We also have a suite of three Passive Income model portfolios designed to meet your real-world needs for different types of passive income. Whether you prefer stable payouts, higher payouts, or higher capital appreciation, we balance higher-yielding assets and higher-quality assets to meet your unique income and wealth accumulation needs.

The Endowus Cash Management model portfolios consist mainly of money market funds (MMFs) and/or short-duration fixed-income funds (unit trusts). They are designed to deliver relatively stable returns as compared to other fixed-income portfolios of longer durations and maturities. Nevertheless, there are risks in investing in these portfolios, and they are not capital-guaranteed.

We recognise that everyone is different and will have varying needs, personal circumstances, goals, and views that may require different levels of customisation. Therefore, one option is to use the Endowus model portfolios as a base; you can easily tweak the allocations to your liking. 

Alternatively, on the Fund Smart platform, you can also choose to build your own multi-fund portfolios from scratch, using the Best-in-Class funds curated by the Endowus Investment Office. 

A core-satellite investment strategy is where an investor splits his capital allocation between a portfolio that serves as a foundation for his general wealth accumulation goals, and a conviction-based portfolio that is more focused and riskier. Usually, investors considering this strategy would use a diversified, broad market exposure portfolio such as our Global model portfolios as this is designed to give the highest probability of success, for their core allocation. This can then be supplemented by our Satellite portfolios that are more narrowly focused on specific assets, regions, sectors or themes.

Investing in a thematic or sector focused satellite portfolio on its own could potentially be riskier as it is less diversified. However, when used as a supplement to a core portfolio, the overall risk to their wealth accumulation goals can be balanced out while also providing the investor with the exposure to the asset, region, sector or theme that can potentially generate larger returns over the long-term from the secular trends or growth opportunities.

For most investors, the Endowus core portfolios - Global model portfolios and Factors model portfolios by Dimensional Fund Advisors (for Professional Investors only), are designed to be efficient broad market investment portfolios for general wealth accumulation needs. Built on the back of empirical data and academic research, the core portfolios are suitable as the backbone of an investor’s overall investment strategy.

The satellite portfolios are designed to provide additional best-in-class exposure to specific assets, regions, sectors or themes. These are suitable for investors seeking to complement their existing broad market investments with a further focused allocation to express individual views on long-term growth opportunities.

You may think about your portfolio needs by thinking of three main factors:

1. Goal 
2. Risk Tolerance
3. Timeline

Goal

Essentially, you are asking yourself, “What do I want this money to do?”. Do you want this bucket of money to grow passively over a period of time for retirement? Or perhaps you’re hoping to establish a steady source of income with this money? Your answers to these questions serve as the foundation upon which you can build an investment portfolio.

Risk Tolerance

You need to assess “How much risk are you willing to take?”. Can you stomach your stock investment portfolio going down by over 40% in a crisis and stay the course? If not, you probably should not be invested in 100% stocks, and need a balanced portfolio of diversified stocks and bonds.

Timeline

The question “how long can I keep this money invested?” is an easy but helpful one. This would also help determine your risk appetite for this bucket of money as well as the type of portfolio that is suitable for it. 

Once you’ve worked through these 3 starting questions, head over to https://endowus.com/en-hk/how-we-invest and pick a portfolio most suited to your needs.