Endowus Core-Flagship Cash/SRS Portfolio

The 100% Equity Portfolio gained 1.8% in August, slightly outperforming the broader equity benchmark by 0.3%

• The Flagship Cash 100% Equity Portfolio returned 1.8% in August, outperforming the global equity market, which returned 1.5%. 
• August saw a rotation out of large cap stocks to favour small cap stocks. This was on the back of greater market expectations of a near term interest rate cut by the Federal Reserve, following dovish comments by the Fed after recent data indicated a cooling labour market. As smaller companies tend to have a higher proportion of debt, they tend to be more sensitive to borrowing costs and, as a result, benefit more from lower interest rates. The portfolio’s overweight to small cap stocks therefore contributed to the outperformance this month.
• Additionally, value stocks outperformed growth stocks in August, thereby contributing to the portfolio’s outperformance given its overweight to the former. Growth stocks' performance lagged that of value stocks as the growth oriented technology sector saw muted performance this month. 
• Within the Portfolio, the top performers were the Dimensional Pacific Basin Small Companies Fund and the Dimensional Global Core Equity Fund, which returned 6.1% and 2.2% respectively.

The 100% Fixed Income Portfolio gained 0.7% in August, outperforming the broader fixed income market by 0.4%

• The Flagship Cash 100% Fixed Income Portfolio delivered positive returns of 0.7% in August, outperforming the fixed income market, which returned 0.3%. 
• Global bonds’ positive performance in August was supported by various factors. Firstly, shorter dated US Treasuries saw yields decline on the back of greater expectations of a near term interest rate cut by the Fed. The expectation of a near term US interest rate cut was also a tailwind for emerging market debt. Lastly, the widening of credit spreads, which boosted investment grade credit’s performance, also contributed to global bonds performance. 
• The Flagship 100% Fixed Income Portfolio outperformed the broader fixed income market due to its overweight to emerging market debt, as well as securitised bonds.
• Within the portfolio, the PIMCO GIS Emerging Markets Bond Fund and the PIMCO GIS Income Fund were the top performing funds this month, returning 1.5% and 1.3% respectively.

Endowus Core-Flagship CPF Portfolio

The 100% Equity Portfolio returned 1.8% in August, outperforming the global equity benchmark by 0.3%

• The Flagship CPF 100% Equity Portfolio delivered positive returns of 1.8% in August, outperforming its benchmark, which returned 1.5%
• Similar to the Flagship Cash 100% Equity Portfolio, the Flagship CPF 100% Equity Portfolio outperformed its benchmark in August due to its structural overweight to value and small cap stocks, which outperformed their growth and large cap counterparts, respectively. 
• Within the portfolio, the best performing funds during the month were the Schroder Global Emerging Market Opportunities Fund and the Dimensional Global Core Equity Fund, which returned 5.6% and 2.1% respectively.

The 100% Fixed Income Portfolio rose 0.4% in August, outperforming the broader fixed income market by +0.1%

• The Flagship CPF 100% Fixed Income Portfolio delivered 0.4% in August, outperforming its global fixed income benchmark, which delivered 0.3%.
• The portfolio’s outperformance was contributed to by its overweight to Singapore bonds via the Eastspring Singapore Select Bond Fund and United SGD Fund, which outperformed global bonds.
• The Eastspring Singapore Select Bond Fund and the United SGD Fund were also the best performing funds within the portfolio for the month, returning 1.8% and 0.5% respectively.

Endowus Income Portfolios

The Stable Income Portfolio delivered 1.2% return in August, meaningfully outperforming the broader credit market. 

• All underlying funds surpassed the broader market. The PIMCO GIS Income Fund and AB American Income Portfolio were key drivers of outperformance within the flexible income fund category. Both funds benefited from their longer duration positioning (over 5 years) in August, as well as tactical trades like curve steepeners and local emerging markets currencies.
• The Portfolio's allocation to Asian bonds and emerging markets debt also contributed to the strong performance, though to a lesser extent, as both markets experienced significant gains in August.

The Higher Income Portfolio gained 1.2% in August, outperforming the 20-80 benchmark

• The fixed income portion of the portfolio surpassed the overall credit market, with all underlying funds delivering strong results. Flexible income funds were particularly impactful. Contributions from Asian bonds and high-yield bonds were also significant.

• The equity portion of the portfolio outperformed the global equity market. This was supported by the portfolio's emphasis on high dividend and value factors. Furthermore, currency hedging within the underlying funds helped mitigate the renewed depreciation of the USD against the SGD in August.

The Future Income Portfolio gained 1.1% in August, outperforming the 40-60 benchmark

• Its fixed income component outperformed for reasons similar to those of the Stable Income.
• The equity portion underperformed the global equity market due to its tilt towards low volatility stocks. The BlackRock BGF European Equity Income Fund, a component of the portfolio's European equity allocation, was another significant detractor.

All three Income Portfolios are achieving their payout targets; however, falling rate and increased hedging cost could become a headwind. 

• Actual payouts have remained stable despite the fluctuation of prices across the three Portfolios. Volatility in price returns will result in mark-to-market changes (decrease or increase) in the Portfolio value, but will not impact the actual coupon payments or dividend payouts from the underlying funds. 
• The increase in global interest rates from 2022 - 2023 meaningfully increased the yields in the fixed income markets, creating a higher-yield environment for income-seeking investors. However, the level of yields will likely tamper going forward with the Fed having cut 1% in 2024 and possibly more cuts on the table. Another hopefully more transient headwind to portfolio’s payouts is the increased hedging cost between SGD and USD. Hedging cost between SGD and USD pair surpassed 2% in April 2025, reaching 2.8% in July 2025. This eats into the total return and subsequently income potential of SGD-hedged fixed income funds. Because of the above two reasons, certain funds in the portfolio have started to adjust the distribution payout target downward. 
• Investment grade flexible income funds continue to be able to generate income that’s akin to high yield funds in the current environment where high yield spread is particularly tight. In light of this, we are comfortable with the Higher Income Portfolio generating an income level that is similar to that of Stable Income. It is important to note that the Higher Income Portfolio has delivered better growth in terms of total return than Stable Income, with prudent addition of credit and equity risk. We are monitoring and will take actions to improve the portfolios if we believe there are better building blocks / is room to optimise the portfolios further. 

Endowus Cash Smart Portfolios

Cash Smart Secure continued to generate stable and positive returns in August

• The Cash Smart Secure Portfolio maintained its stable return profile, posting a 0.2% gain in August 2025. 
• Both the underlying funds, Fullerton SGD Cash Fund and LionGlobal SGD Enhanced Liquidity Fund, gained 0.2% respectively. 

Cash Smart Enhanced continued to provide stable returns in August

• Cash Smart Enhanced generated a return of 0.3% during the month.
• This performance was led by the UOBAM United SGD Fund, which returned 0.5%. The other two cash and money market funds, Fullerton SGD Cash Fund and LionGlobal SGD Enhanced Liquidity Fund, gained 0.2% respectively.

Cash Smart Ultra generated positive returns and performed in line with its risk profile in August

• Cash Smart Ultra achieved a return of 0.4% in August.
• All underlying funds generated positive returns during the month, with the short duration funds delivering stronger performances than the cash and money market funds.
• Specifically, the best performing fund was the PIMCO Low Duration Income Fund, which returned 0.9%.

Please note: There has been a change in the benchmark due to the discontinuation of the 3-month SIBOR. The new benchmarks feature higher returns than SIBOR, but our Cash Smart Portfolios have tended to outperform them across various periods.

With the digital wealth platform, Endowus, you can plan and manage your money — whether held in cash, CPF, or SRS — by investing in globally diversified, intelligent, low-cost portfolios seamlessly. To get started, click here.