New Endowus IncomeUp Portfolios designed to meet passive income needs of Hong Kong investors at different life stages, with target monthly payouts of up to 7.5% p.a.

• The latest offering features three fixed income-focused portfolios, custom-built for passive income needs of Hong Kong investors at different life stages 
• All portfolios are designed with Best-In-Class funds from global asset managers, offering diversified sources of income, with competitive payout targets of up to 7.5% p.a.

‍

HONG KONG, 13 MARCH 2024 – Endowus, Asia’s leading digital wealth management platform, has launched the Endowus IncomeUp Portfolios, expertly designed to provide Hong Kong investors with access to passive income streams, while keeping in mind their longer-term capital preservation or growth needs. 

‍

While the elevated level of interest rates in recent months has created some uncertainty among investors, the increase has also improved the total return prospects for fixed income, giving investors the opportunity to achieve higher potential income.

‍

To cater to different investors’ needs for passive income, the newly launched Endowus IncomeUp Portfolios offer three options: IncomeUp Steady, IncomeUp Plus, and IncomeUp Growth. 

‍

‍The portfolios were constructed with the expertise and experience of the Endowus Investment Office, using Best-In-Class UCITS funds from leading global asset managers such as AllianceBernstein, Barings, Capital Group, Fidelity, Invesco, JP Morgan, Neuberger Berman, PIMCO, Pinebridge, and Schroders. 

‍

Investors can get exposure to diversified sources of income, with no lock-up periods, subscription or withdrawal fees. Through the access to institutional share class funds and 100% Cashback on all trailer commissions, the fees of the underlying funds included in these portfolios are reduced by as much as 60%, which translates to better net returns for end investors. 

‍

In addition, investors can enjoy tax efficiency as monthly payouts are not subject to dividend withholding tax obligations, which can be as high as 30% for US-listed instruments. 

‍

The Endowus IncomeUp Portfolios were designed with specific investor needs and demographics in mind, to meet the real-world needs for different types of passive income at different life stages. 

‍

The IncomeUp Steady portfolio prioritises capital preservation and stable payouts, making it suitable for individuals nearing or in retirement, as well as those seeking consistent passive income streams. The portfolio invests 100% in fixed income assets, primarily focusing on higher-quality and diversified fixed income products. Its objective is to prevent distribution payouts from investors’ capital, while maintaining a stable payout target of 5% to 6% p.a..

‍

The IncomeUp Plus portfolio caters to working adults, looking to generate a sustainable, higher passive income stream — particularly those in the "sandwich generation” facing higher monthly spending requirements, juggling competing financial demands from children and ageing parents. With a slightly higher risk threshold, it is a 100% fixed income portfolio with a bias towards higher-risk and higher-yielding fixed income products, aiming to achieve a payout target of 6.5-7.5% p.a..

‍

The IncomeUp Growth portfolio is designed for young working adults, typically in their 20s and 30s, who want to lay a foundation for their financial future, while seeking regular income streams for their monthly expenses. This portfolio allocates 60% to high-quality and diversified fixed income funds, 20% to dividend-paying, globally-diversified equities, and 20% to accumulating, globally-diversified equities. It aims to achieve a target payout of 4-5% p.a., while seeking longer-term capital growth through exposure to quality global dividend stocks and equities.

‍

‍Steffanie Yuen, Head of Hong Kong, Endowus, said, “As we approach the end of the rate-hiking cycle, with potential rate cuts on the horizon, investors must consider the potential consequences of declining cash rates. In this environment, longer duration assets such as fixed income allow investors to lock in the higher yield for longer, which may better suit their medium- to long- term needs. Our IncomeUp portfolios are custom-built with carefully selected funds to address clients’ differentiated passive income needs at different life stages, as well as concerns of capital erosion, high hidden costs, transaction charges, poorly designed structures or poor underlying asset choices. Endowus will continually strive to offer differentiated, institutional-quality portfolios to serve the needs of a wide spectrum of investors.”

‍

‍Marcio Bogoricin, PIMCO Head of Global Wealth Management, Asia ex Japan, said, “We are thrilled to be included in Endowus’ IncomeUp Portfolio. In the current uncertain market environment, we view fixed income investments as broadly appealing given the attractive yields and valuations, as well as the potential for resilience across multiple economic scenarios. As a global leader in active fixed income with deep expertise across public and private markets, PIMCO is committed to delivering on its long track record of generating consistent income to investors through cycles.”

‍

‍Elisa Ng, Hong Kong Chief Executive Officer and Head of Hong Kong Funds and Institutional Business, J.P. Morgan Asset Management, said, “We are delighted to partner with Endowus and expand our product offerings to Hong Kong investors to meet their needs for higher income. Fixed income presents a wide opportunity set for investors to lock in elevated yields as the markets expect central banks to approach the end of the rate hiking cycles. Backed by deep resources and rigorous research of our global fixed income team, our income strategy aims to help investors capture a stable stream of higher income while lowering the portfolio’s volatility.”

‍

‍Pauline Cheng, Head of Business Development, Financial Institutions, Hong Kong, Neuberger Berman, said, “In light of peaking short term interest rates, we believe that the opportunity costs of holding excess cash are increasing. With this in mind, conservative investors are carefully considering investments in high-quality fixed income assets to lock in attractive yields. We are delighted that Endowus has included two of Neuberger Berman (“NB”)’s flagship fixed income funds, namely NB Strategic Income Fund and NB Short Duration Emerging Market Debt Fund to its IncomeUp portfolios. This addition allows us to cater to the income generation preferences of Hong Kong investors through these assets.”

‍

Endowus launched in Hong Kong in May 2023 as the Company’s first overseas expansion. Through its Fund Smart platform, Endowus offers 200+ Best-In-Class funds that were selected and curated by its Investment Office from thousands that were available. These public and private markets funds span from cash and money management, fixed income, equities, multi-asset, hedge funds, private credit, private equity and private real estate.

‍

Investors can construct their investment portfolios with single funds, or choose from ready-made model portfolios, including core portfolios such as “Global Diversified”, “IncomeUp”, and “CashUp”, as well as a selection of thematic satellite portfolios.To find out more about Endowus IncomeUp Portfolios, please visit https://endowus.com/en-hk/model-portfolios/passive-income-incomeup.

‍