Endowus February 2026 Portfolio Performance Review

Endowus Core-Flagship Cash/SRS Portfolio

The 100% Equity Portfolio rose 1.7% in February, outperforming the broader equity benchmark by 0.4%.

• Global equities continued their upward trajectory in February, accompanied by a further broadening of returns across sectors and regions. Notably, “HALO” (Hard-Asset, Low-Obsolescence) remained a dominant theme during the month, as investors continued shifting away from mega-cap technology stocks towards asset-heavy sectors such as Materials and Utilities. Region-wise, Asian equities continued experiencing robust gains during the month, while US shares fell. Overall, global equities rose by 1.3% in February.
• The Flagship Cash/SRS 100% Equity Portfolio delivered 1.7% in February, outperforming the global equity benchmark. Overweight exposure to value and emerging market stocks benefitted the Portfolio, as both segments outperformed their growth and developed market counterparts respectively.
• Within the Portfolio, the top performer was the Dimensional Pacific Basin Small Companies Fund, which ended the month up 6.8%. The Fund benefitted from its overweight to Japanese equities, which performed strongly during the month. On the other hand, the Amundi Prime USA Fund was the weakest performer, falling 1.3%. The Fund declined as US equities were weighed down by profit taking within the Technology and AI related sectors. Specifically, investors were growing increasingly weary whether the large spendings on AI by hyperscalers will continue to generate favourable returns.

The 100% Fixed Income Portfolio gained 1.0% in February, underperforming the broader fixed income market by 0.2%.

• February saw easing inflation data, driving US Treasury yields down during the month. Additionally, growing AI and geopolitical concerns drove a flight to quality response, causing yields to fall further. As a result, global government bonds benefitted and delivered favourable returns during the month. On the other hand, credit markets saw weaker performance as the flight to quality response led to a widening of both investment grade and high yield credit spreads. Overall, global bonds ended the month up 1.2%.
• The Flagship Cash/SRS 100% Fixed Income Portfolio gained 1.0% in February, underperforming the broader fixed income market. The Portfolio lagged due to its shorter duration, which benefitted less from the overall decrease in yields over the month. Moreover, the Portfolio’s overweight to securitised bonds also weighed on relative returns, as spreads of securitised bonds widened during the month.
• Within the Portfolio, the Dimensional Global Core Fixed Income Fund was the best performer in February, gaining 1.2%. The Fund benefitted from its longer duration and security selection. On the other hand, the iShares Global Aggregate 1-5 Year Bond Index Fund was the weakest performer due to its shorter duration. The Fund gained 0.4% during the month.

Endowus Core-Flagship CPF Portfolio

The 100% Equity Portfolio gained 1.1% in February, underperforming the global equity benchmark by 0.2%.

• The 100% Equity Portfolio underperformed the global equity benchmark due to its overweight to US equities, which declined during the month as investors grew increasingly concerned whether large spendings on AI by hyperscalers will continue to generate favourable returns.
• Within the Portfolio, the Dimensional Emerging Markets Large Cap Core Equity III Fund was the best performer, ending the month up 1.8%. The Fund benefitted from its emerging market exposure as well as its stock selection. On the other hand, the weakest performer was the Amundi Prime USA Fund, which fell by 1.3% during the month.

The 100% Fixed Income Portfolio rose 0.9% in February, but trailed the global fixed income benchmark by 0.3%.

• The 100% Fixed Income Portfolio underperformed the global fixed income benchmark due to its overweight to Singapore bonds, which underperformed global bonds during the month. Additionally, the Portfolio’s shorter duration was a drag on relative performance, as it gained less when yields declined during the month.
• Within the Portfolio, the Dimensional Global Core Fixed Income Fund was the best performer, gaining 1.2% during the month. On the other hand, the United SGD Fund was the weakest performer due to its short duration, ending the month up 0.3%.

Endowus Income Portfolios

The Stable Income Portfolio delivered 0.7% return in February, slightly underperforming the broader credit market. 

• All underlying funds delivered positive returns, but the Portfolio's structural short-duration positioning limited its ability to capture the global rates rally, with the US 10-year Treasury yield falling nearly 30 basis points over the month. 
• The Fidelity Asian Bond Fund and NB Strategic Income Fund were the top performers, while the JPM Income Fund  and NB Short Duration Emerging Markets Debt Fund were the key relative detractors.

The Higher Income Portfolio returned 1.1% in February, outperforming the 20-80 benchmark

• The fixed income sleeve underperformed the credit benchmark, with the high yield and shorter-duration funds lagging the broader credit market. This was more than offset by the equity sleeve, which significantly outperformed the equity benchmark.
• The equity sleeve is oriented toward dividend-paying, value-style stocks, and is overweight non-US regions compared to the benchmark. This positioning proved rewarding in February, as non-US and value equities broadly outperformed, driving strong returns from the JPM Emerging Markets Dividend Fund, Fidelity Asia Pacific Dividend Fund, and BSF Global Real Assets Securities Fund. The UBS US Total Yield Fund was the sole detractor, reflecting weakness in US equities during the month.

The Future Income Portfolio returned 0.9% in February, underperforming the 40-60 benchmark. 

• The fixed income sleeve underperformed the credit benchmark for the same reasons as Stable Income. 
• The equity sleeve performed broadly in line with global equities. While both Higher Income and Future Income have a similar geographical allocation, Future Income leans more toward quality-oriented companies. This quality tilt was a slight headwind in February's value-led environment — GMO Quality Investment Fund and Amundi Prime USA Fund were weighed down by the late-month US selloff, partially offset by strong gains from BGF European Equity Income Fund, FSSA Dividend Advantage Fund, and Dimensional World Equity Fund.

Latest current target payout update:

In September 2025, we revised 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 prior 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

Cash Smart Secure continued to generate positive returns in February. 

• The Cash Smart Secure Portfolio maintained its stable return profile, posting a 0.1% gain in February. 
• Both the underlying funds, the Fullerton SGD Cash Fund and the LionGlobal SGD Enhanced Liquidity Fund, returned 0.1%. 

Cash Smart Enhanced continued to provide stable returns in February.

• Cash Smart Enhanced generated a return of 0.2% during the month, slightly higher than Cash Smart Secure’s return as it has slightly higher risk.
• The Portfolio’s returns were boosted by its allocation to short duration bonds via the United SGD Fund, which delivered 0.3% during the month.

Cash Smart Ultra generated the highest return amongst the cash smart portfolios in February, performing according to its risk level.

• Cash Smart Ultra delivered a return of 0.3% in February.
• The Portfolio’s performance was bolstered by its higher exposure to short duration bonds, which benefitted more from the decline in yields during the month.

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.

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