Endowus launches Core Enhanced Portfolios with exposure to global systematic long/short strategies as client assets in alternatives cross US$200 million through its digital platform
- Endowus provides curated access to over 20 global alternative fund managers with expertise in diverse strategies across liquid alternatives, private markets and hedge funds to HNWIs, family offices, and institutions
- In tandem with demand, Endowus launched new Core Enhanced Portfolios, combining systematic market exposure with liquid alternatives to provide enhanced downside protection, and in doing so improve the risk-adjusted returns on its most popular Core Flagship Portfolios in Hong Kong and Singapore
- These new investment solutions are curated and constructed by the 13-person Endowus Investment Office with extensive experience across private and public markets at leading global banks, asset managers and investment consultants
- The alternative assets offered by Endowus are only available for Professional & Accredited Investors
HONG KONG, SINGAPORE, 21 OCT 2024 – Asia’s leading wealth management platform Endowus has reached a new milestone in its Endowus Private Wealth business line, surpassing US$200M in alternative Assets under Advice (AUA). Endowus’ current suite of alternatives product range spans across multiple asset classes including liquid alternatives, hedge funds, private equity, private credit and private real estate funds by over 30 funds from notable asset managers such as AQR, Ares, Carlyle, EQT, HarbourVest, KKR, Millennium, Oaktree, Partners Group, Point72, and other global leading managers.
New Core Enhanced Portfolios for Professional & Accredited Investors
Launched as another building block for Endowus Private Wealth clients, Endowus has launched the new Core Enhanced Portfolios, which boasts both global and sectoral diversification, designed with the primary goal of wealth compounding, steering clear of speculative tactical bets.
The Core Enhanced Balanced Portfolio is a globally diversified portfolio which takes advantage of long/short liquid alternatives strategies managed by global fund houses such as AQR, Acadian and Campbell to not only mitigate volatility but also maintain daily liquidity, mitigate risk and deliver higher risk-adjusted returns than a traditional 60/40 portfolio over a market cycle.
By focusing on risk management, it aims to outperform the traditional 60/40 portfolio over a market cycle, delivering higher returns per unit of risk.
Historically, a traditional 60/40 portfolio offers investors an annualised return of 6-7%1 in the last decade while the new Core Enhanced Balanced Portfolio aims to provide investors an annualised return of 7-9%1 over the mid-to-long term, with volatility ranges similar to a 60/40 portfolio.
On the other hand, the Core Enhanced Conservative Portfolio builds upon its Balanced peer, with a further emphasis on mitigating risk by lowering volatility through additional allocation to short duration bond strategies managed by Jupiter and PIMCO.
Hugh Chung, Chief Investment Advisory Officer of Endowus said, “The Endowus Investment Office is uniquely set up as an investment consultancy in-house to produce new and innovative solutions to meet the specific needs of our clients. The new enhanced core portfolios are a great example. They strategically combine liquid alternatives with public market funds, enabling clients to minimise the volatility and optimise the returns on their investments while maintaining daily liquidity. As part of the Endowus building block approach, the offering of this portfolio suite alongside other portfolios contrasts with the traditional approach which often focuses on selling the “hottest” new private fund or hedge fund in an ad hoc manner without considering the impact to the client’s overarching asset allocation or liquidity.”
The underlying investment philosophy at Endowus continues to follow its Strategic Passive Asset Allocation (SPAA) framework, driven by fundamental empirical data that most investors typically fail to time the markets. Being globally diversified over the long-term, without taking unnecessary concentration risk while keeping your cost of investing low, is what gives clients the highest probability of success.
Investors’ building blocks of success
Devised by the Endowus Investment Office, the Endowus Private Wealth ‘building blocks’ approach focuses on meticulously curating funds and creating fit-for-purpose portfolios. By making these building blocks easy to understand and execute on, the approach can cater to the needs of investors across the spectrum in terms of risk tolerance, income needs, investment goals, and specifically for professional and accredited investors’ liquidity expectations.
These portfolios may comprise entirely of funds in public markets or a combination of two asset classes or more. These portfolios can then be expertly recommended to Endowus’ clients through its self-serve digital advisory platform or human client advisors depending on the investors’ needs.
For example, the Flagship Portfolio is Endowus’ most popular investment solution amongst retail and Endowus Private Wealth clients alike, and is often the most common start to a client’s investment journey. For professional and accredited investors who have more experience in private markets and hedge funds strategies, they can also view and “one-click subscribe” to semi-liquid and liquid alternatives in the Endowus app directly.
The variety of funds and portfolios available, the lower minimums and fees compared to private banks, and the ease of investing in them enable clients to manage their total wealth holistically, and to build and manage investment goals across public and private market strategies seamlessly in a single app.
Continued success of Endowus Private Wealth
Endowus Private Wealth combines the convenience of the firm’s digital capabilities with the expertise of its white-glove human advisory services. Professional Investors (PIs) in Hong Kong and Accredited Investors (AIs) in Singapore can benefit from the all-in-one platform that seamlessly integrates access to best-in-class public market, private market and hedge fund exposures with greater ease, removing the high minimums typically required by private banks.
The growth in AUA for alternatives is boosted by the launch of an in-app function that allows for the direct buying of alternatives in mid-2024, a feature that resonated with HNWIs’ preference for accessing private markets through digital platforms as uncovered in the HNW Investor Sentiment 2024 Report. Today, 3 in 5 investment orders for alternatives are made on the Endowus app.
Gregory Van, Co-founder and CEO of Endowus said, “Since the launch of Endowus Private Wealth in both markets, we have seen incredible interest from our clients and accelerated growth in client assets. We have brought on family offices investing over US$100 million, and hundreds of individual investors above US$1 million on the Endowus platform, looking for evidence-based portfolio advice and access to great funds at low costs. We have heard the needs of our clients and these new solutions will enable an acceleration of the growth in these asset classes. Through these advances in technology and solutions, Endowus is providing and actively championing the future of private wealth management.”
The new Core Enhanced portfolios and the factsheets for the new Core Enhanced portfolios can be accessed by Endowus clients who are verified professional investors (HK) and accredited investors (SG).
