Flagship Portfolios — Cash/SRS

‍Key performance highlights: 

The Flagship Cash/SRS 100% Equity Portfolio returned 9.5% in Q3 2025. Global equities continued their rally despite persistent concerns about economic uncertainty and a potential US government shutdown.This strong momentum was fueled by sustained optimism around artificial intelligence, the Fed's interest rate cut, expectations for further near-term cuts, and easing global trade tensions.

The Portfolio outperformed the broader global equity market, which returned 8.9% in Q3. The Portfolio’s overweight to emerging market equities contributed to the outperformance, as emerging market equities outperformed their developed market counterparts. The outperformance in emerging market equities stemmed from the robust rise in Chinese stocks, a rally ignited by progress in US-China trade talks and a boost in AI spend by Chinese big tech companies.

Within the Portfolio, the Dimensional Pacific Basin Small Companies Fund, which returned 12.8% this quarter, was the strongest performer. The Fund’s robust performance was driven by its overweight to Taiwan stocks, as well as its stock selection. On the other hand, the Dimensional Global Core Equity Fund, which returned 8.3%, was the weakest performer in the Portfolio. This was due to its overweight to value stocks, which underperformed their growth counterparts this quarter.

The Flagship Cash/SRS 100% Fixed Income Portfolio returned 1.7% in Q3 2025. Global bonds ended the quarter in positive territory, on the back of falling US Treasury yields and tighter credit spreads.

The Portfolio outperformed the broader global fixed income market, which delivered 0.5%. The outperformance was driven by the portfolio’s overweight to emerging market bonds, which saw robust performance due to growing expectations and the eventual rate cut by the Fed in September, as well as improving economic fundamentals of emerging market countries.

All fixed income funds within the Portfolio delivered positive returns and outperformed the global fixed income benchmark, except the Amundi Index Global Aggregate Fund, which passively tracks the benchmark. In particular, the iShares Emerging Markets Government Bond Index Fund was the best performer this quarter, returning 5.9%, on the back of the robust performance of emerging market bonds.

Endowus Flagship Portfolios — CPF 

Key performance highlights: 

The Flagship CPF 100% Equity Portfolio gained 9.6% in Q3 2025, outperforming the broader global equity market, which returned 8.9%. Similar to the Flagship Cash/SRS 100% Equity Portfolio, the CPF Flagship 100% Equity Portfolio’s outperformance was primarily due to its overweight to emerging market equities, which outperformed their developed market counterparts.

The Schroder Global Emerging Market Opportunities Fund returned 17.1% in Q2, and was the best performing fund in the Portfolio. The Fund’s strong performance was driven by its stock selection, as well as the robust performance of emerging market equities this quarter. On the other hand, the Dimensional Global Core Equities Fund, which returned 8.1% this quarter, was the weakest performer in the Portfolio this quarter. The Fund’s overweight to value stocks weighed on relative performance, as value stocks underperformed their growth counterparts.

The Flagship CPF 100% Fixed Income Portfolio gained 1.0% in Q3 2025, outperforming the broader global fixed income market, which returned 0.5%. The Portfolio’s outperformance was driven by its overweight to Singapore bonds via the Eastspring Singapore Select Bond Fund, which delivered 3.6% and is the Portfolio’s best performing fund this quarter. All the Portfolio’s underlying funds delivered positive returns this quarter, with the weakest performer being the Amundi Global Aggregate Bond Fund, which passively tracks the global fixed income index. 

Endowus ESG Portfolios 

Key performance highlights:  

The ESG Equity Portfolio delivered 5.8% return in Q3 and underperformed the broader global equity market. The Portfolio’s tilt to small cap and quality styles in emerging markets was the biggest relative detractor, as both lagged the broader emerging market meaningfully this year. Additionally, in Q3, allocation to sustainable infrastructure struggled. 

The ESG Fixed Income Portfolio continued its outperformance in Q3 2025 and delivered +1% excess return against the benchmark. This brings its total year to date performance to +4.9%, which is +2.6% more than the benchmark. All of the underlying funds outperformed the benchmark in the quarter. The portfolio’s allocation to Asia bonds via Eastspring Asia Select Bond Fund was the top contributor. Additionally, the portfolio’s overweight exposure to credit relative to the benchmark contributed to performance as credit spread continued to tighten in Q3. 

The Endowus ESG Portfolios not only focus on financial returns but also on promoting positive societal and environmental impact. We are committed to being responsible stewards of capital, as demonstrated by our active review of ESG data to inform our investment decisions.

For instance, the ESG 100% Equity Portfolio aligns better with the United Nations Sustainable Development Goals, showcasing lower greenhouse gas emissions and enhanced board gender diversity compared to the global equities.

Our ESG 100% Fixed Income Portfolio also emphasises investments that contribute to environmental sustainability and social well-being. 

The PIMCO GIS Climate Bond Fund allocates over 75% to green bonds. The PIMCO GIS ESG Income Fund tilts towards companies or issuers with positive ESG characteristics, seeks a lower carbon footprint and actively engages issuers. The Allspring Climate Transition Global Investment Grade Credit Fund targets to decarbonise the Fund by 2050 and excludes securities exposed to ESG risks. 

Endowus Factor by Dimensional Portfolios

‍Key performance highlights: The Factor 100% Equity and 100% Fixed Income portfolios both outperformed their respective equity and fixed income benchmarks in Q3.

The 100% Equity portfolio’s outperformance stemmed from its overweight to emerging market equities, specifically China and Taiwan stocks which saw robust performance. The portfolio benefitted from its exposure to these two countries via the Dimensional Pacific Basin Small Companies Fund, as well as the Dimensional Emerging Markets Sustainability Core Equities Fund. These two funds were the strongest performing funds within the portfolio during Q3.

As for the 100% Fixed Income portfolio, all the underlying fixed income funds outperformed the benchmark. The portfolio’s outperformance was mainly driven by the Dimensional Global Core Fixed Income Fund, which was the best performing Fund within the portfolio during the quarter. The Fund’s longer duration and higher exposure to corporate bonds benefitted from the Fed’s interest rate cut as well as tightened credit spreads which occurred the quarter. 

Endowus Satellite Portfolios

Launched in November 2021, the Endowus Satellite Portfolios are designed to supplement the core portfolios and offer clients 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. 

China Equity Portfolio

‍Key performance highlights: 

The China Equity model portfolio posted a gain of +4.5% in Sep 2025, bringing the return in Q3 2025 to +19.2%. 

In the third quarter of 2025, China's equity market experienced a sharp rebound, outperforming global peers and reversing its prior laggard status. The rally was driven by policy support for domestic chipmakers, alongside an acceleration in AI spend and product rollout from some of China’s biggest tech names. More broadly, easing trade tensions with the US, and hopes that China’s ‘anti-involution’ policy would shore up the domestic economy, supported the wider market. Liquidity played a pivotal role, with retail investors reallocating savings from low-yield deposits into equities, particularly targeting Hong Kong-listed banks and leading tech companies such as Alibaba, which saw dramatic gains.

The Endowus China Equity Model Portfolio delivered a robust +19.2% return in Q3 2025, slightly underperforming its benchmark, the Morningstar China All Cap Index, which returned +21.5%. JPM China A-Share Opportunities Fund was the best-performing constituent fund in the portfolio and delivered over +30% return.

Despite upbeat market sentiment and gains led by AI, chip, and green economy themes, economic headwinds such as deflation risks, weak manufacturing, and a struggling property sector persisted. While valuations expanded significantly, concerns about a potential market bubble and sustainability of gains remain, as earnings growth overall has been modest. Fund managers noted optimism but maintained caution given ongoing macroeconomic challenges and policy uncertainties. Overall, Q3 reflected renewed confidence in Chinese equities, supported by reform momentum but tempered by structural economic issues.

Megatrends Portfolio 

‍Key performance highlights: The Portfolio performed strongly in the third quarter with a 8.2% return, although this was slightly lower than the benchmark’s 8.9%. Performance was consistently positive across July to September, with the Portfolio outperforming in July and August but underperforming during September’s tech-driven rally. 

The single-thematic funds were the best performers in Q3 and contributed the bulk of the Portfolio’s returns, despite a total weight of 22.5%. GMO Climate Change generated 25% returns in the third quarter, as clean energy (particularly solar) continued its recent resurgence. The Fund was further helped by solid performances in the industrial metals segment. The Janus Henderson Horizon Biotechnology Fund also performed well with a +21% return in Q3, as sentiment towards the biotech sector turned positive. Clinical successes, an uptick in M&A activity and a softer regulatory regime helped drive performance.  

On the other hand, the DWS Global Agribusiness was the only negative performer for the quarter, as sentiment remains poor for the agriculture sector. The broader multi-thematic funds also underperformed the benchmark, having outperformed significantly in the previous quarter. 

Technology Portfolio

‍Key performance highlights: The Tech Portfolio delivered 10.1% in Q3 and 15.2% YTD. This compares to the Morningstar Global Markets Index which returned 8.9% in Q3 and 11.7% YTD, and the Morningstar Global Technology Index which returned 13.3% in Q3 and 15.1% YTD.

While the Portfolio delivered a strong absolute performance in Q3 and outperformed global equities, it trailed the technology index by around the same magnitude as its outperformance in Q2.

The main detractors to relative performance this quarter were the Franklin Technology Fund (+8.9%), BGF World Technology Fund (+9.2%), JPM US Technology Fund (+9.9%), and the Fidelity Global Technology Fund (+10.4%). The reasons ranged from being underweight tech hardware and peripherals (Franklin Technology Fund and BGF World Technology Fund), overweight small caps and hence underweight Mag 7 (JPM US Technology Fund and Fidelity Global Technology Fund), and being more value focused (Fidelity Global Technology Fund). However, both the BGF World Technology Fund and Franklin Technology Fund outperformed the index on a YTD basis, while the Fidelity Global Technology Fund  has only modestly underperformed on a YTD basis by less than 1%. Even the JPM US Technology Fund, the weakest performer on a YTD basis has returned 12.5% YTD (vs the tech index at 15.1%)

Note 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.

Global Real Asset Portfolio

‍Key performance highlights: 

The Endowus Real Assets portfolio finished the quarter with a +4.0% return, as all underlying funds contributed positively. The portfolio eked out a small gain in July, as positive returns from Janus Henderson Global Property and KBI Global Infrastructure more than made up for the negative returns generated by the Ninety One Global Natural Resources Fund and PIMCO GIS Commodity Real Return Fund.

Subsequently, both funds performed strongly, with the Ninety One Global Natural Resources Fund ending the quarter with a 12.2% return. The Fund was a key beneficiary of the continued strength of gold, with returns compounded by the Fund’s holding in gold and silver miners that typically have a higher beta to gold. 

Endowus Income Portfolios 

‍Key performance highlights: 

The Stable Income Portfolio gained 1.5% in the third quarter, bringing its YTD performance to 5.2% and outperforming the broader credit market. Overall, the portfolio benefited from its allocation to emerging markets bonds and Asian bonds, as both areas continued to deliver strong returns in Q3, on the back of improved sentiment towards China. Performance of the flexible fixed income funds were mixed during the quarter and was overall in line with the market. Most of the portfolio’s outperformance was generated in August. In September, the Portfolio underperformed the credit market, with the largest detractor being the JPM Income Fund.

The Higher Income Portfolio gained 2.3% in the third quarter, bringing its YTD performance to 6.3%. In Q3, the fixed income component of the portfolio outperformed the broader credit market. In addition to reasons similar to the Stable Income Portfolio, the Higher Income Portfolio’s additional tilt to the high yield market contributed further to its relative performance. High coupon and spreads tightening in Q3 supported high yield markets’ strong performance. However, the equity component of the portfolio underperformed the broader equities market. Currency hedging by most underlying funds was a detractor to performance as USD appreciated against SGD in Q3. The portfolio’s allocation to and security selection in the real estate sector was another main detractor. 

The Future Income Portfolio delivered 3.4%, bringing its YTD performance to 6.6%. The portfolio underperformed the 40-60 benchmark in Q3 solely due to the underperformance of its equity component. Its allocation to the AB Low Volatility Equity Portfolio Fund was the largest detractor, as low volatility stocks struggled during a risk-on environment in Q3. Additionally, its overweight position in European equities weighed on performance too as European equities underperformed in Q3. As for the fixed income component, it mirrors the Stable Income Portfolio.

Current target payout update:

We are revising downwards the current target payout of Higher Income Portfolio to 5-6%. The recent increase in hedging cost between SGD and USD pair has caused certain fund managers to lower the payout, impacting the overall payout levels across all three income portfolios. This in particular has caused Higher Income Portfolio’s payout yield to dip below the existing target payout range. In light of the prevailing interest rate cycle, it is only prudent to lower the current target payout range of the Higher Income Portfolio. 

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 spreads are 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 the prudent addition of credit and equity risk. This means that after receiving the income, investors in the Higher Income Portfolio would have seen a stronger increase in their capital year-to-date. 

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

‍Key performance highlights: The Cash Smart portfolios delivered positive returns in Q3, in a similar fashion to what was seen during the second quarter. 

Falling rates and lower yields continued to be a central theme during the third quarter. This rally was driven by increased market expectations for Fed rate cuts, especially post the weak July and August U.S. non-farm payroll numbers and the downward revision to the prior year’s jobs growth. On the inflation front, U.S CPI data in September ticked up to 2.9% while Core CPI steadied at 3.1%, both remaining in line with forecasts. Citing that “downside risks to employment had risen”, the Fed lowered the federal funds rate by 25bps to 4.00- 4.25% on September 17, with the median dot plot projecting around two more rate cuts for the rest of 2025.

With the market narrative shifting towards concern over growth, the rate-sensitive 2-year U.S treasury yield fell 11bps to 3.6% during the quarter. Additionally, compared to U.S rates, SG rates experienced a more significant drop this past quarter due to a high demand for yield in SGD and a less restrictive monetary policy backdrop since 1H2025. This downward momentum in rates and short term yields provided tailwinds for money market and short duration securities. The Cash Smart Secure portfolio generated the lowest returns, followed by Enhanced, while Ultra generated the strongest returns. 

Cash Smart Secure closed the third quarter up 0.5%. This performance was supported by consistent monthly returns throughout the July to September period. The two underlying funds in the portfolio, Fullerton SGD Cash Fund and LionGlobal SGD Enhanced Liquidity Fund, responded positively to the falling SG rate environment and displayed steady growth during the quarter. Secure remains a relatively safer option across the Cash Smart suite for investors seeking shelter for their investments while generating short-term yield.  

Cash Smart Enhanced generated a return of 0.8% in the third quarter. All underlying funds contributed positively in Q3, with the UOB United SGD Fund contributing the most, up 1.1% over the quarter. With UOB United SGD fund’s higher duration and credit exposure due to its higher allocation to short duration bonds, the fund benefited more from falling yields and a tightening in credit spreads. With slightly added risk, the Enhanced portfolio generated higher returns than Secure, in line with expectations.  

Cash Smart Ultra generated a return of 1.1% in the third quarter, contributing the strongest return among the Cash Smart range. All underlying funds generated positive returns, with the three short duration bond funds PIMCO Low Duration, LionGlobal Short Duration Bond, and Fullerton Short-Term Interest Rate taking the lead, up between 1.3% to 1.9% over the quarter. The combination of lower yields and tighter credit spreads provided a favorable backdrop for short duration and money market securities. With a higher added risk than Enhanced or Secure, Ultra has a potential to produce higher returns. Investors seeking to largely avoid exposure to market volatility for their liquid investments may consider switching to lower-risk portfolios such as Secure or Enhanced.

Cash Smart Portfolios, primarily exposed to USD and SGD market rates, continue to see declining projected yields as markets remain in a rate-cut environment. 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.