Endowus Core-Flagship Cash/SRS Portfolio

The 100% Equity Portfolio gained 4.3% in May, slightly underperforming the broader equity benchmark by 0.1%

• The Flagship Cash 100% Equity Portfolio posted positive returns of 4.3% after fund fees, versus the global equity market which returned 4.4%. The Flagship Cash 100% Equity Portfolio slightly underperformed its benchmark due to its slight underweight to US stocks which performed well this month.
• This positive equity return was on the back of improving consumer sentiment and easing trade tensions. Against this backdrop, developed market equities outperformed their emerging market counterparts this month. Specifically, US equities led the charge. 
• The best-performing equity fund this month was the Amundi Prime USA Fund, which rose 5.2%. On the other hand, the Portfolio’s allocation to the Amundi MSCI Emerging Markets Fund, which tracks the MSCI Emerging Markets Index and returned 2.8%, weighed on performance. 

The 100% Fixed Income Portfolio posted a slight loss of 0.3% in May, outperforming the broader fixed income market by 0.2%

• The global fixed-income market, as represented by the Bloomberg Global Aggregate Index, fell by 0.5% for the month. This was on the back of rising sovereign bond yields across most developed markets, specifically the US, due to concerns over the country’s deteriorating fiscal position. The Flagship Cash 100% Fixed Income Portfolio outperformed the broader fixed income market in May due to its shorter duration, which made it less sensitive to the rise in bond yields.
• All the underlying fixed-income funds posted negative returns for May, except the Dimensional Global Core Fixed Income Fund and the PIMCO GIS Emerging Market Bond Fund, which delivered flat returns.
• The worst-performing fund in the fixed-income sleeve was the Amundi Global Aggregate Bond Fund, which tracks the benchmark and returned -0.5% for the month. 

Endowus Core-Flagship CPF Portfolio

Note: The Flagship CPF Portfolio allocations were updated in July with three new funds from Dimensional. 

The 100% Equity Portfolio gained 4.5% in May, slightly outperforming the global equity benchmark by 0.1%

• The CPF 100% Equity Portfolio delivered positive returns of 4.5% in May and outperformed its benchmark which delivered 4.4%. The Portfolio’s slight overweight to US stocks contributed to outperformance this month.
• Similar to the Cash Flagship Portfolio, the best-performing fund this month was the Amundi Prime USA Fund, which rose 5.2%.
• In the Portfolio, the Dimensional Emerging Market Large Cap Core Equity Fund, which returned 3.4%, was the biggest laggard this month. 

The 100% Fixed Income Portfolio posted a return of negative 0.2% in May, outperforming the broader fixed income market by about 0.3%

• Similar to the Flagship Cash 100% Fixed Income Portfolio, the CPF 100% Fixed Income Portfolio ended the month with negative returns on the back of rising sovereign bond yields, particularly in the US. 
• However, the CPF 100% Fixed Income Portfolio outperformed the broader fixed income market due to its shorter duration and overweight to Singapore bonds via the EastSpring Singapore Select Bond Fund. The EastSpring Singapore Select Bond Fund is the best performing fund in the fixed income sleeve in May, rising 0.8% in the month.
• On the other hand, the worst performing fund was the Amundi Global Aggregate Bond Fund, which returned -0.5%.

Endowus Income Portfolios

The Stable Income Portfolio delivered a 0.1% return in May, slightly outperforming the broader credit market

• The Portfolio's allocation to the Neuberger Berman Short Duration Bond Fund was the top contributor, driven by its exposure to the emerging markets bond market.
• We also observed a significant divergence in performance within the flexible income space in May. Specifically, the Neuberger Berman Strategic Income Fund returned +0.4%, whereas the PIMCO GIS Income Fund posted a -0.2% return. This outcome underscores our conviction in diversifying across different management styles.
• Finally, the allocation to Asian fixed income was a minor detractor from the Portfolio's overall performance.

The Higher Income Portfolio gained 1.1% in May, outperforming the 20-80 benchmark

• The fixed income component delivered robust outperformance against the broader credit market, with its exposure to emerging markets bonds and high yield bonds being the top contributors.
• The equity component slightly underperformed the global market, as the Portfolio's focus on high-dividend stocks and real assets lagged the broader rally. However, this was partially offset by currency hedging, which protected against USD depreciation and added to relative performance.

The Future Income Portfolio gained 1.7% in May, slightly behind the 40-60 benchmark

• Its fixed income component outperformed for reasons similar to those of the Stable Income.
• The equity component underperformed the global market, primarily due to an overweight in low-volatility stocks and Asian equities. This was partially offset by effective currency hedging, which added to relative performance.

All three Income Portfolios are achieving their payout targets 

• 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. 
• Yields in the fixed-income market have risen meaningfully following the increase in global interest rates, creating a higher-yield environment for income-seeking investors. 
• The changing interest rate environment has resulted in a divergence between the respective payout yields of Stable Income and Higher Income. This divergence is a reflection of the enhanced ability of investment-grade flexible income funds to generate income in the current environment of elevated interest rates, compared to high-yield and equity funds. 
• These dynamics were pivotal in the Recommended Portfolio Change in November 2023, where we improved the credit quality of all three Portfolios while maintaining the target payout levels. As we continue to monitor these evolving market conditions, it's crucial to remember that the Higher Income Portfolio is strategically crafted to yield a higher total return than the Stable Income Portfolio over the long term

Endowus Cash Smart Portfolios

Cash Smart Secure continued to generate stable and positive returns

• The Cash Smart Secure Portfolio maintained its stable return profile, posting a 0.2% gain in May 2025. 
• This performance is attributed to the continued positive returns from both the underlying funds, the Fullerton SGD Cash Fund and the LionGlobal SGD Enhanced Liquidity Fund, which both contributed 0.2%.

Cash Smart Enhanced continued to provide stable returns in May

• Cash Smart Enhanced generated a return of 0.3% during the month.
• This performance was led by the  UOBAM United SGD Fund, which returned 0.4%. The other two underlying money market funds, Fullerton SGD Cash Fund and LionGlobal SGD Enhanced Liquidity Fund, ended the month with a 0.2% gain. 

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

• Cash Smart Ultra achieved a return of 0.3% in May.
• All of the underlying funds finished the month in positive territory, helping the Portfolio achieve positive returns amidst the negative returns posted by the broader bond market this month.
• The best performing fund was the LionGlobal Short Duration Bond Fund, which returned 0.5%. 

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 time periods.

Endowus ESG Portfolios

(The latest commentary for the Portfolios is as of the end of last quarter)

‍Key performance highlights:  

In Q1 2025, the portfolio exhibited a resilient performance, outperforming the growth index benchmark and closely aligning with the overall non-ESG benchmark. 

However, two areas detracted from the Portfolio's overall performance. The Stewart Investors Global Emerging Markets All Cap Fund underperformed partly due to an overweight position in India, while other funds with high exposure to companies like Alphabet also faced the challenges of the IT sector in Q1. 

It is worth highlighting that the KBI Global Sustainable Infrastructure Fund, providing exposure to the defensive sector, made a positive contribution to the Portfolio's performance. This illustrates the importance of diversifying across sectors within the Portfolio.

The Fixed Income Portfolio outperformed the benchmark in the first quarter by 0.8%. Active management by PIMCO via the two underlying funds, the PIMCO GIS ESG Income Fund and the PIMCO GIS Climate Bond Fund, proved to be additive to performance. 

Portfolio’s allocation to investment grade bonds via the Allspring Climate Transition Global Investment Grade Credit Fund also contributed to relative outperformance; high carry and gains from duration exposure more than offset the negative impact of credit spread widening in the first quarter. 

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

(The latest commentary for the Portfolios is as of the end of last quarter)

‍Key performance highlights: The Factor 100% Equity Portfolio outperformed in line with its benchmark over the quarter, while the Factor 100% Fixed Income performed in line with the global fixed income markets.

The Portfolio's performance during the quarter was driven by the strong contributions from regional allocations, particularly the Dimensional Emerging Markets Sustainability Core Equities Fund and the Dimensional Pacific Basin Small Companies Fund. These investments played a significant role in boosting the Portfolio's overall performance. However, the recent macro uncertainty in the U.S. had a detracting effect on the U.S. Core Equity fund allocation.

In the Fixed Income Portfolio, the performance aligned with the Bloomberg Global Aggregate Index. Although the short-duration fund delivered a performance on the lower side, its consistent performance compensated for it. On the other hand, the Global Core Fixed Income fund rebounded strongly in February after experiencing negative performance in January.

Factor premia are long-term in nature, and investors who maintain exposure to them over a longer-term horizon are generally rewarded. However, this means potential short-term underperformance from time to time.

Endowus Satellite Portfolios

(The latest commentary for the Portfolios is as of the end of last quarter)

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 Portfolio posted a gain of 1.3% in March 2024, bringing the Q1 2025 return to 2.9%.

The market, especially tech and growth stocks, experienced a significant boost at the end of January and throughout February. This was driven by the emergence of DeepSeek, which renewed confidence in China’s innovation capabilities. Additionally, President Xi's meeting with private tech entrepreneurs was seen by investors as a positive, pro-business move. The market also performed better than other global markets, with the impact of US tariffs being less severe than expected and positive economic indicators, like manufacturing growth, keeping investors optimistic through March.

The benchmark (Morningstar China All Cap Index) outperformed due to its high concentration in tech stocks such as Tencent and Alibaba, with weights of 14% and 10% respectively, which benefited from these market tailwinds. In contrast, our Portfolio lagged due to its more cautious allocation strategy, avoiding large bets exceeding 10% in a single stock. Regardless, our Portfolio performed better than other common market indices like the CSI 300 (-1.8% for Q1 2025 in SGD terms).

Clients who opted in for the Recommended Portfolio Change (“RPC”) in November 2024 will be pleased to see that the new version of the Portfolio outperformed the older version in 2024 and through Q1 2025. Clients who have not yet opted in may do so at any time via the Endowus app. More information can be found here: Latest enhancements to Endowus Satellite Portfolio - China Equities. 

Megatrends Portfolio 

Key performance highlights: The Portfolio started 2025 on a bright note, with most funds outperforming the index in January, amidst strong performances from Janus Henderson Biotech and DWS Global Agribusiness. However, with the onset of volatility driven by President Trump’s tariff program, almost all of the underlying funds reversed their gains and ended the quarter in negative territory.

Thematics AI and Robotics and Janus Henderson Biotech were the main detractors over the quarter. With a core focus on the technology sector, the Thematics AI and Robotics experienced a larger drawdown compared to the broader equity index and other funds in the Portfolio. On the biotech front, the Trump administration’s actions continued to hurt the sector. Vocal vaccine sceptic Robert F. Kennedy Jr.’s confirmation as the head of the United States Department of Health and Human Services in February caused dismay, while the resignation of a key Food and Drug Administration official led to a further sell-off in biotech stocks. 

On a brighter note, the DWS Global Agribusiness Fund managed to generate a positive return for the quarter. Robust earning results, along with a likely ‘flight to safety’ to the Fund’s more defensive companies, allowed the Fund to outperform the broader market. 

Technology Portfolio

Key performance highlights: The Tech Portfolio delivered a -9.8% loss in March 2024, bringing Q1 2025 return to -12.2%, in line with the broader technology market index.

The first quarter presented challenges for the tech sector, driven by a mix of factors. Uncertainty surrounding US tariffs, potential spending cuts by the Department of Government Efficiency, rising inflation, and weakening consumer confidence all contributed to a cautious market outlook. Additionally, continued concerns about the sustainability of capital expenditure in artificial intelligence (AI) further dampened investor sentiment. These factors led to a "risk-off" approach across various assets, triggering selloffs in technology. Our portfolio was directly impacted by these market headwinds as the technology sector as a whole struggled. 

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Regardless, clients who opted in for the Recommended Portfolio Change (“RPC”) in November 2024 will be pleased to see that the new version of the portfolio outperformed the older version in 2024 and through Q1 2025. Clients who have not yet opted in may do so at any time via the Endowus app. More information can be found here: Latest enhancements to Endowus Satellite Portfolio - Technology. 

Global Real Asset Portfolio

‍Key performance highlights: 

The Endowus Real Assets portfolio delivered a solid performance in Q1 2025, gaining 2.0% and outperforming the broader market, which saw global equities decline by 2.9% during the quarter.

Most of the underlying components of the portfolio outperformed their respective benchmarks, with the commodity-related components being the best absolute performers, followed by the infrastructure equities. 

The PIMCO GIS Commodity Real Return Fund and Ninety One Global Natural Resources Fund were standout performers, both rising over 9.5% during the quarter. This strong performance was driven by commodities emerging as one of the best-performing asset classes, bolstered by a notable 19% surge in gold prices.

Conversely, the Janus Henderson Horizon Global Property Equities Fund was the portfolio's weakest performer for the quarter. However, its performance was in line with its benchmark.

The portfolio's diversified strategy highlights its resilience, delivering positive returns consistently across all three months.

In September 2024, we conducted a Recommended Portfolio Change (“RPC”) to the Global Real Asset Portfolio, previously known as the Global Real Estate Portfolio. Through this RPC, the Portfolio was repositioned to seek exposure to real assets. More information can be found here: Introducing Endowus Real Assets Portfolio. 

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