Endowus HK Q3 2026 Portfolio Performance Review

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. 

Endowus Flagship Portfolios 

Key performance highlights: 

The Flagship 100% Equity Portfolio gained 1.6% in Q3 2026, outperforming the broader global equity market, which gained 1.2%. The outperformance was driven mainly by an overweight to Japanese stocks, which performed strongly as continued corporate governance reforms provided a tailwind. The Portfolio also benefitted from its structural overweight to value stocks through Dimensional funds, though these relative gains were more than offset by the Portfolio’s overweight to small cap stocks.

Within the Portfolio, the Dimensional Pacific Basin Small Companies Fund was the best performer, up 6.0%, helped by its overweight to Japanese equities. The weakest performer was the Amundi Core MSCI Emerging Markets Fund, down 1.3%. The Fund passively tracks the emerging market index and struggled as investors rotated out of semiconductor stocks and into software.

The Flagship 100% Fixed Income Portfolio fell 3.2% in Q3 2026, underperforming the broader fixed income market, which fell 2.5%. The underperformance was driven by its overweight to credit and emerging market bonds, which declined over the quarter.

Within the Portfolio, the iShares Global Aggregate 1-5 Year Bond Index Fund was the strongest performer, down 0.7% helped by  its shorter duration.  The weakest performer was the PIMCO GIS Income Fund, down 4.1%, was weighed down by its longer duration, with its overweight to securitised bonds adding to the underperformance as spreads widened. 

Read more: Introducing Flagship Portfolios

Endowus CashUp model portfolios

Read more: How does Endowus calculate representative historical performance?

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 third quarter of 2026 saw US rates continue to sell off, with bond yields rising through September. The ongoing US-Iran conflict pushed energy prices sharply higher, raising inflation concerns and prompting hawkish responses from major central banks. For the first time since 2023, the US Federal Reserve raised the Federal Funds target range by 25 bps to 3.75%-4.00% in September, citing still-high inflation and signalling that further hikes could follow. On the credit side, credit spreads widened, with US investment-grade wider by 8 bps and US high yield by some 37 bps.

​CashUp Simple finished the quarter up 0.9%. The two underlying funds, Ping An USD Money Market Fund and HSBC Global Money US Dollar, each generated positive returns every month, with Ping An USD MMF slightly ahead. Their very short-dated instruments - short-term deposits and high-quality money market securities - proved resilient to rising rates, capturing steady yield for the portfolio. CashUp Simple is suited for investors with more immediate cash needs.

​CashUp Plus also gained 0.9% in the third quarter. Both Ping An USD Money Market Fund and Amundi Cash USD Fund generated steady, positive monthly returns, and their ultra-low duration kept them resilient as rates sold off. Relative to CashUp Simple, CashUp Plus remains better suited to investors with near to mid-term cash needs, given its higher allocation to duration and credit.

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 front-end rates, are starting to see a slight pickup in yields given recent rate movements. Investors can 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

Read more: How does Endowus calculate representative historical performance?

‍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 declined by 3.2% in Q3, slightly lagging the broader credit market. Performance was primarily driven by the portfolio's duration positioning. The main relative detractors were flexible income funds with longer duration exposure, such as the AB American Income Fund (-4.4%) and PIMCO GIS Income Fund (-4.1%). Conversely, the Neuberger Berman Emerging Markets Short Duration Bond Fund (-1.1%) helped cushion overall performance due to its shorter duration positioning.

The IncomeUp Plus Portfolio fell by 2.6% in Q3, outperforming the broader credit market on its tilt toward high-yield bonds, which proved more resilient during rate-driven fixed income market weakness given their shorter-duration profile. 

The IncomeUp Growth Portfolio declined by 1.3% Q3, slightly outperforming the 40-60 benchmark. Its fixed income sleeve mirrors the IncomeUp Steady Portfolio, while its equity component outperformed global equities on its allocation to low-volatility companies and the defensiveness of call option writing. The top contributors were the AB Low Volatility Equity Portfolio (+3.1%) and the Invesco Global Equity Income Advantage Fund (+3.0%) The primary detractor was the Schroder ISF Global Emerging Markets Opportunities Fund,  as emerging-market equities lagged global peers in Q3. 

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

Read more: How does Endowus calculate representative historical performance?

​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 Global Technology model portfolio was broadly flat (-0.1%) in Q3 2026. This compares with the Morningstar Global Markets Index, which rose 1.2%, and the Morningstar Global Technology Index, which rose 3.8% over the same period.

Although the Fidelity Global Technology Fund — the largest holding at 30% — rose 5.2% for the quarter, the Portfolio underperformed the Global Tech Index, as the other five funds were held back by their exposure to AI infrastructure and hardware, which fell sharply in July. This reverses the Q2 pattern, when those five funds outperformed the index while the Fidelity fund lagged.

The Fidelity Global Technology Fund outperformed the tech index in July on its underweight to the semiconductor sector, which saw the sharpest pullback in tech. It instead holds an overweight to software, with exposure to mission-critical software companies that may be able to monetise AI features and functionality.

BlackRock Next Generation Technologies was the weakest fund in Q3, down 8.5% (though still positive year-to-date), on its high beta, overweight to semiconductors and underweight to software. The semiconductor sector underperformed software by around 25% in July, reversing part of the gap built up in 1H26. The JPM US Technology Fund also underperformed (-4.4%), given its greater exposure to smaller tech companies as large-cap tech outperformed in Q3.

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

China Equities model portfolio

Read more: How does Endowus calculate representative historical performance?

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.

Having outperformed in the first two quarters of the year, the China Equity Portfolio fell 8.2% in Q3 2026, underperforming the Morningstar China All Cap Index, which gained 3.1%. Performance was dragged down by the portfolio’s overweight to onshore A-shares, which underperformed their offshore counterparts. AI-related names in particular faced headwinds from weakening investor sentiment as earnings expectations declined, while enthusiasm for offshore shares grew over the quarter, as these companies tend to be less exposed to AI hardware.

Within the Portfolio, the Fidelity China Focus Fund was the best performer, up 4.3%, helped by its lower exposure to onshore equities relative to peers. The weakest performer was the T. Rowe Price Funds SICAV – China Evolution Equity Fund, down 13.6%, held back by its focus on A-shares and stock selection within technology names — though it had contributed significantly to the portfolio’s gains in 1H26.

Sustainability - Equities model portfolio

Read more: How does Endowus calculate representative historical performance?

‍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:

The Sustainability - Equities model portfolio underperformed the broader Equity Index in Q3, delivering a gain of 0.3%. The Schroder Global Sustainable Growth Fund was the standout contributor, while the Schroder Global Climate Change Fund was the largest detractor, and the BlackRock BGF Sustainable Energy Fund and the Aberdeen Emerging Markets SDG Equity Fund also weighed on returns. The macro backdrop drove much of this divergence: persistently elevated real interest rates compressed valuations for clean energy and climate infrastructure companies while a resilient US dollar and renewed concerns over China’s recovery dampened risk appetite across emerging markets.

Future Trends model portfolio

Read more: How does Endowus calculate representative historical performance?

‍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 Q3, the Future Trends model portfolio underperformed the benchmark in the third quarter, as thematic headwinds weighed on most underlying funds. Through the first two months of the quarter, it tracked the benchmark roughly in line, with a strong August offsetting a weaker July. . However, September accounted for the bulk of the portfolio’s underperformance, as all underlying funds posted negative returns.  

Schroders Climate Change and AB Sustainable Global Thematic were the main detractors. The clean energy segment was under pressure in July and September, as traditional oil and gas found favour and higher base rates weighed on the longer-duration nature of renewables. Several of AB Sustainable Global Thematic’s industrial names also declined, alongside the fund’s renewables-related holdings.

NB Global Equity Megatrends (GEM) and AB International Healthcare performed well. NB GEM’s stock selection capabilities held up well over the quarter, while AB International Healthcare performance was driven by solid returns from key holdings such as Merck and Gilead. 

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 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

Disclaimer

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.

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