- The Endowus Global model portfolios make up the backbone of an investor’s overall investment strategy, and consist of equity and fixed income funds. The offerings can be catered to your risk tolerance and return expectations.
- Investors can use these ready-made, 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.
- To get started with Endowus HK, click here. For an overview of all the funds available on the Endowus Fund Smart platform, refer to our investment funds list.
What are the Global model portfolios on Endowus?
Selecting the right investment products to build a diversified portfolio can be time-consuming. That’s why we are excited to introduce the Global model portfolios, to enable you to grow your wealth and reach your goals effortlessly with Best-In-Class strategies at low and fair fees.
The Global model portfolio series is built from multiple unit trusts — both equity and fixed income funds — each with a different blend of equity and fixed income spanning the risk spectrum to suit your risk tolerance and return expectations. These templates are built by the Endowus Investment Office from the ground-up, with Best-In-Class Funds managed by well-regarded fund managers.
An investor 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.
These portfolios are designed to be efficient broad market investment portfolios for general wealth accumulation needs. With hundreds of securities spanning different geographies and sectors, the core portfolios can play a role as the backbone of an investor’s overall investment strategy. These portfolios are currently available in US dollar denomination.
We partner with well-regarded and reputable fund managers who are experts in their sectors and niches. For the Endowus Global model portfolios, we have identified the equity funds from Capital Group, PineBridge, Schroders, and T.Rowe Price as appropriate investments for the equity component, and the PIMCO funds for the fixed income portion.
Endowus Global model portfolios: underlying funds
The Endowus Global model portfolios were constructed with the objective of being a one-stop solution for investors who want to invest in a globally diversified portfolio but do not have the time to construct their own portfolios.
The overall portfolio is well balanced and diversified in terms, sector allocation, geographical breakdown, and market capitalisation breakdown.
Portfolio composition — 100% Equity Portfolio
Market cap allocation
Portfolio composition — 100% Fixed Income Portfolio
Portfolio characteristics
Why invest in Endowus Global model portfolios?
The portfolios are globally diversified and optimised for each level of risk, and we believe that they could act as the core allocation of an investor’s investment portfolio for the long term. Below are some of the benefits using these model portfolios:
Wide range of risk levels
The Endowus Global model portfolios offer investors a range of six different asset allocation portfolios, each with a varying mix of equities and fixed income, designed to suit different risk tolerances and associated return expectations. This helps to ensure that investors are comfortable with the level of risk they are taking on and can achieve their investment objectives.
Built by professionals
Constructing a well-diversified investment portfolio requires a deep understanding of global markets, asset allocation, risk management, and manager selection. It can be challenging and time-consuming for individual investors to research and select the right mix of investments that suit their risk tolerance and return objectives. By utilising these portfolios, you can benefit from the expertise of investment professionals who have years of experience in wealth management and manager research.
Access to the best investing minds
The underlying funds in the portfolios are managed by leading investment management firms such as Capital Group, Schroders, T. Rowe Price, PineBridge, and PIMCO. These firms have a long history of managing investments and are known for their expertise and track record in delivering strong investment returns over the long term.
Actively diversified
One of the key benefits of investing in these portfolios is diversification. By investing in a mix of global equities and fixed income, investors can reduce the overall risk of their portfolio and potentially achieve more consistent returns over the long term. Even though the funds in the portfolios are actively managed, each fund is diversified, with a track record for staying true to their investment philosophy and style. The varied investment approaches of the funds balance each other out, forming a portfolio that is not too dependent on one sector, geographical region or investment style and factor, but with the potential to still outperform.
Finally, the Global model portfolios offer investors the convenience of a single investment product that provides exposure to multiple funds, simplifying the investment process and providing diversification benefits.
How have the Global model portfolios performed?
The portfolios have also displayed consistent and robust historical performance over the short-term and longer-term periods. The performance figures in the tables below are as of the end of first quarter, 31 March 2023. These were calculated using the oldest share classes available for the funds and are in USD.
Performance of the Global 100/0 model portfolio (100% equity)
For both the equity and fixed income portions, historical trailing returns outpace those of the respective indices, MSCI ACWI and Bloomberg Global Aggregate Index over the 1-, 3-, 5- and 10-year periods.
Volatility, as indicated by the standard deviation figures, are roughly in-line with the benchmark for the equity portfolio and marginally higher than the Bloomberg Global Aggregate Index for the fixed income portfolio. The PIMCO funds tend to be more active than the benchmark in terms of geography and sectors as it invests in EM bonds and high yield as well as securitised products — that can lead to differences in performance and volatility.
Performance of the Global 0/100 model portfolio (100% fixed income)
We expect the portfolios to continue to deliver similar risk-adjusted returns, relying on security selection to outperform with contributions from asset allocation via the underlying funds.
How we built the Global model portfolios
The Endowus Investment Office is a team of investment experts with more than 150 years of experience combined, across public and private market investing, family offices, and wealth management. The team screens the universe of unit trusts, also known as mutual funds, and curates a final list by implementing a strict, institutional-grade screening process that is rigorous, thorough, and continuous.
The process, known as SMART+, vets funds across categories to bring you only those that are Best-In-Class — the team monitors the funds’ performance regularly.
The Investment Office selects from the curated list a short list of equity and fixed income funds that can form the backbone of the portfolio. A few key characteristics are:
- Diversified portfolio with a large number of holdings
- Experience and track record of the portfolio managers
- The repeatability and robustness of the investment process
- The investment approach and style of the portfolio
- How correlated each fund is to the other
After the selection process, the portfolio is then optimised to ensure that the overall characteristics and positioning including, sector allocation and geographical allocation are largely in-line with the benchmarks — MSCI ACWI for the equity component and the Bloomberg Global Aggregate Index for the fixed income component.
How to create your own Global model portfolio on Fund Smart
Here are a few simple steps to create the Endowus Global model portfolios via Fund Smart. We’ll use the Endowus Global 20/80 model portfolio (20% equities, 80% fixed income) as an example.
Step 1: Login to your Endowus account. In the My Goals section on the sidebar, click on “+” to add a goal.
Select your investment horizon and objective for this goal, and click on “Browse funds''. Don’t have an account with Endowus Hong Kong? Get started here.
Step 2: Select a model portfolio you’re interested in, by clicking “Preview”.
You will see a list of model portfolios that are recommended for you, depending on your investment horizon, investment objective, and risk profile. (This means you might not see all of the available model portfolios if your risk profile is lower.)
Step 3: Check through the portfolio details. Click on “Continue with portfolio” if you wish to proceed.
Here, you will see details of the model portfolio such as the description, risk analysis, fees, performance, and allocations of its underlying funds. After you click on “Continue with portfolio”, you can still add funds, remove funds, and modify allocations if you want to.
Step 4: Allocate your funds in this portfolio, and review an analysis of it. Click on “Continue” to proceed.
You can either invest in the model portfolio as it is, or modify the allocations, add funds, and remove funds to suit your preferences and needs.
Step 5: Set up your investment. Input the sum you want to invest, and decide whether this will be a one-time and/or recurring monthly investment. Click on either “Continue to review” or “Save goal and invest later” to proceed.
On this page, you will see the projected outcomes, historical performance, selection criteria, underlying holdings, and warning statements. Make sure to review the warning statements carefully. You can still modify or stop any recurring monthly investments later.
Remember that return is proportionate to risk. You should consider your risk tolerance — for example, how much money can you tolerate losing in a certain time period, in a worst-case scenario? The portfolio should then suit your risk appetite, as well as your investment timeline and financial goals.
Should you invest in the Endowus Global model portfolios or single funds?
The Endowus Investment Office has designed the asset allocation, selected the funds, and optimised the fund allocation for the Endowus Global model portfolio series. Each portfolio is diversified and optimised for each level of risk.
Investors can also buy single funds on the Fund Smart platform as a way to complement your existing core investments, which may include the core portfolios. If you want to get additional exposure to certain asset classes, geographies, sectors, themes or factors, you can select the additional funds via Fund Smart.
At Endowus, wealth management for everyone
The Endowus Global model portfolios offer investors a convenient and effective way to build a diversified portfolio that can help to minimise risk and potentially increase returns.
With digital wealth platform Endowus, investing is now made low-cost and accessible for every season in life, investing goal, and risk appetite. Make time your biggest asset and begin your investing journey with Endowus today. Start investing towards your goals from just HK$10,000.
At a low, fair, and transparent fee, both retail and professional investors can access Best-In-Class Funds and stand on the shoulders of financial giants. And with our industry-first 100% Cashback on trailer fees, save up to 50% or more on your investment fees.
Get more details about the Endowus Global model portfolios here. Read about the other Endowus model portfolios in this article.
For an overview of all the funds available on the Endowus Fund Smart platform, refer to our investment funds list. Follow this link to get started with Endowus HK.
Read more:
- Introducing the Endowus HK team
- Why invest through Endowus
- What is Fund Smart?
- An overview of the Endowus model portfolios
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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.
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.
Complex Products
Some of the funds contained in this article are complex products and investors should exercise caution when investing in these products. Though these products have been authorised by the SFC, authorization does not imply official recommendation. SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance.
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.
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