Endowus HK Q2 2025 Portfolios Performance Review

Read on to find out how the portfolios performed in the second 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 Very Aggressive 100% Equity Portfolio rose by 10.6% in Q2 2025, underperforming the broader global equity markets by around 100 bps. As large-cap growth names led the equity recovery rally post the market turmoil caused by Liberation Day, the portfolio’s structural overweight to value and small-cap companies was a headwind to performance, while the overweight to emerging markets equities helped performance.

Emerging markets and Asian equity funds showed stronger performance with the Asia Pacific fund, Emerging Markets core equity fund, and a broad EM Index Tracker growing around 12.1%, 11.3%, and 11.1%, respectively. Meanwhile, the global developed markets index tracker, US large-cap index fund, and global core equity index fund grew 11.1%, 10.3% and 9.9% respectively. 

The Very Conservative 100% Fixed Income Portfolio outperformed the Bloomberg Global Aggregate Index by 30 bps, rising 1.9% for the quarter. Similar to equities, emerging market bonds performed better than their developed market counterparts. Among developed markets, the global core fixed income fund contributed to outperformance due to its longer duration positioning and higher exposure to corporate bonds, which benefited from credit spread tightening in Q2. PIMCO Income also outperformed thanks to its dynamic duration management.

Overall, our 60:40 Flagship portfolio returned 7.1% in the second quarter and 7.0% year-to-date, broadly in line with the benchmark of 7.5% in the second quarter and 7.1% year-to-date.

Read more: Introducing Flagship Portfolios

Endowus CashUp model portfolios 

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

Key performance highlights: The CashUp portfolios delivered attractive, positive returns in Q2 2025 on the back of falling short-term yields, which provided a positive tailwind for money market and short duration fixed income this past quarter.

CashUp Simple finished the second quarter up 1.1%. The two underlying funds in the portfolio, Ping An USD Money Market Fund and HSBC Global Money US Dollar, proved to be resilient liquidity management options during the volatile quarter. Both funds generated positive, stable returns of approximately 0.33% - 0.38% each month through the quarter, providing a steady growth in portfolio value. With its low portfolio duration of less than 60 days on average and an emphasis on fixed deposits and high-quality money market securities, CashUp Simple is more suitable for investors who have immediate and near-term cash needs.

CashUp Plus also generated positive performance in the second quarter, adding 1.1%. Despite some market volatility in early April, falling short-term yields in May and June provided tailwinds for short duration bonds. Both the Ping An USD Money Market Fund and the Amundi Cash USD Fund generated positive returns over the quarter. The Amundi Cash USD Fund, which takes on slightly more corporate and duration exposure, generated an average of 0.339% per month over the quarter. With a slightly higher yield and 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% in the second quarter, performing in line with the broader credit market. Despite the volatility experienced in April and May, the portfolio returned positively in each month, with the bulk of the positive return being registered in the month of June. The portfolio benefited from its fund selection in the flexible fixed income space, with most funds outperforming the overall fixed income market. The flexible fixed income managers’ active sector rotation (e.g. towards emerging markets) and duration management (increased duration during the duration sell-off in May, for example) aided their ability to capture the upside in June.  On the other hand, the portfolio’s allocation to Asian bonds was a relative detractor as the funds in this category underperformed the broader market. 

The IncomeUp Plus Portfolio gained 2.4% in the second quarter, 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 spread tightening in Q2 supported high yield markets’ strong performance.

The IncomeUp Growth Portfolio gained 5.4% in the second quarter. The fixed income component mirrored IncomeUp Steady and performed in line with the broader credit market. Its equity component underperformed the global equities market slightly. The AB Low Volatility Equity Portfolio Fund was the biggest detractor. On the other hand, Capital Group New Perspectives Fund’s outperformance against the benchmark helped to partially offset the underperformance. 

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 outperformed both the broader equity and technology market index in Q2 with a strong 23.7% return, bringing its year-to-date performance to 9.8% in line with the broad equity market and an outperformance vs the technology market index

Five out of the six underlying funds in the Global Technology model portfolio outperformed the Technology Index in Q2. The Fidelity Global Technology Fund was the only fund that reported returns below the technology index in Q2 (despite still posting double-digit returns). However, this was due to its “value nature” which helped protect the downside in Q1. The fund has outperformed the technology index over the entire 1H of 2025. 

We believe the strength of the tech active funds in 1H 2025 suggests that stock picking in tech is starting to work again after a period of Magnificent 7 domination, which led to most active funds underperforming the benchmark in 2023 and 2024.

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 4.2% in Q2 2025. 

The second quarter of 2025 saw a renewed sense of optimism in China's equity market, driven by several key factors. Confidence in China's innovation capabilities surged with the continued advancement of Artificial Intelligence, exemplified by breakthroughs like DeepSeek's R1 AI models. This technological enthusiasm was complemented by the Chinese government's targeted retail stimulus, particularly for household appliances, along with the steady investment in infrastructure. Furthermore, the easing of US-China trade tensions provided a tailwind, particularly benefiting emerging markets and Asian equities.

The Endowus China Equity Model Portfolio delivered a strong 4.2% return in Q2 2025, outperforming its benchmark, the Morningstar China All Cap Index, which returned 3.0%. Schroder ISF Greater China Fund was the best-performing constituent fund in the portfolio and delivered over 7% return.

Fund managers observed improving policy clarity and the market's positive reaction to measures supporting economic stability and growth in China. The tech sector continued to be a focal point, with specific innovations driving investor interest. While overall market sentiment improved, managers emphasised selective opportunities and the importance of active management to capture alpha amidst ongoing sectoral nuances. Our diversified approach across these active managers allowed the portfolio to effectively participate in the market rebound while managing concentration risks.

Read more: Introducing the China Equities model portfolio: capture Greater China’s high growth potential

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 Q2 2025, the Sustainability - Equities model portfolio outperformed the broader Equity Index. While all funds in the model portfolio delivered positive performance, the more thematic funds were the main contributors. After a poor first quarter, the thematic focus BGF Sustainable Energy Fund delivered the strongest performance.

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 rebounded strongly in the second quarter, as markets switched back to a risk-on mentality. All of the growth-oriented funds in the portfolio outperformed the broader markets, led by the Schroder Global Climate Change Fund. 

However, the overall portfolio underperformed the equity benchmark, as weaker performances from BlackRock’s BGF Nutrition and AB International Healthcare Fund dragged returns down. BGF Nutrition was resilient during the first quarter equity market drawdown, but the same lower risk-return profile meant that the Fund did not capture as much upside during the rebound seen in the second quarter. Similarly, AB International Healthcare was the best performer in Q1 but was negatively impacted by broader developments in the healthcare sector. US President Trump’s aim to link US drug prices to pricing overseas was a dampener, while the appointment of drug critic Dr Vinay Prasad to the US Food and Drug Administration dealt further damage.  

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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: 

• 2025 market outlook: Interest rates, Trump, and AI
• Introducing the Endowus HK team
• Choosing Endowus when investing in Hong Kong

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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. 

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.

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.