The Endowus Investment Summit 2025, held in Hong Kong on 10 April, was attended by 500+ clients, partners, and industry leaders.

The event was ushered in by extreme bouts of volatility in the market. The US administration's announcement of a 90-day pause on tariffs had stimulated its equity market, generating one of the best single-day returns since the Second World War. At that point, memory was still fresh that, merely a week ago, global equity and bonds experienced deep plunges as the market reacted to the so-called Liberation Day.

The Summit was organised against such a backdrop, gathering timely and profound insights from four panels of industry experts, leaders, and investors on key investment trends, and a fireside chat. 

A conversation with CEOs: Making sense of the new world order

• “Uncharted territories, everything we are seeing is unseen, the situation is as clear as mud” was how the panel of C-suites described the current level of uncertainty. Inflation is subject to numerous dependencies, but the primary concern lies in the economic growth outlook.
• With recent tariff tit-for-tats in mind, China will face material headwinds given its export-driven economy in the near term. However, there is reason to be optimistic in the longer term as an external shock could help it shift its model. During the transition process to a consumption-driven model, domestic consumption, innovation in traditional industries, and the service sector could see a stronger investment case as a result of an external shake-up. 
• Amid these uncertain times, it is crucial not to become overly fixated on following the market too closely, whether the latest US tariffs will go ahead as announced or are eventually rolled back. It is true that de-risking in the market is happening, but this shouldn't be done in one’s portfolio if the personal risk appetite is high enough to stomach the fluctuations. 

Read more: Stay invested in a downturn — these charts show why

Equities outlook: Seeking opportunities in uncertain times

• The S&P 500 Index has seen a significant increase in concentration, and the question arises as to whether this trend will continue. One reason for the concentration is that these mega-scale technology companies operate in winner-take-all industries. Market leadership changes over time, and the top companies are not static. In the shorter term, the market is broadening, with the earnings growth gap between top companies and the rest of the market narrowing. 
• This concern about concentration highlights the need for a more diversified approach in equities. It does not mean disregarding the top companies entirely, but rather sizing them appropriately while also seeking exposure to other sectors with strong earnings growth potential. Including consistent dividend-paying stocks in a portfolio can contribute to overall quality and stability.
• Despite concerns over AI infrastructure spending following the DeepSeek incident and the potential economic recession on the horizon, the drive and success of AI remain sturdy. The increase in tariffs can contribute to inflationary pressure, which in turn may encourage companies to invest in scaling up their AI capabilities to reduce labor costs and improve production efficiency. The investment cycle for AI is expected to persist. 
• Multinational companies have faced significant challenges due to tariffs, but the assumption that domestic-facing companies would outperform is not necessarily accurate. MNCs are adapting by establishing local supply chains and building capabilities from the ground up, making them multi-local national companies that are likely to fare much better in the current landscape.

The credit playbook: Exploring the credit spectrum

• The bond market is an attractive option due to its defensiveness, stability, and ability to serve as a portfolio ballast. Looking back over the past 20 years, with a starting yield at around 8% to 9%, losses on a forward one-year basis have only occurred during the global financial crisis, where the economies took the time to recover from a protracted recession. Moreover, recent volatility in the market has also emphasised the importance for managers to focus on relative value and active management in fixed income selection.
• The audience’s popular vote for the most attractive sub-asset class went to investment grade bonds. However, managers on the panel warn against flocking into the higher quality bonds, as spreads are still below the long-term median and may already be pricing in a recession. It is important to consider the divergence in the market and identify areas of dislocation and margin of safety for investment opportunities.
• What is particularly intriguing about credit is that it is likely the only asset class where, on the day of investing in a bond, one can already determine the total return. The yield-to-worst concept provides confidence that as long as the coupon and principal are received, the expected return will be realised. 

Fireside Chat with iCapital

• iCapital aims to further democratise alts, with efforts including investing in technology and application and new market expansion. Staying ahead of product innovation is crucial to enable clients to diversify, with semi-liquid options being an example.
• Two secular growth tailwinds are driving iCapital forward. The first is the growing trend of allocating to alternative investments, which is expected to expand from US$17 trillion to US$30 trillion globally within the next five to six years. iCapital has seen the advantages of wealth channels increasing their allocations to alternative investments, with current levels standing at less than 3%. This creates a significant opportunity within the private wealth channel.
• Globally, investors are increasingly interacting with private markets through platforms like Endowus, allowing them to invest at lower minimums and in a more diversified manner to access top private market firms. The advice on portfolio construction is crucial, as private market investments often involve complexity and liquidity considerations. With a longer time horizon objective, compounding at a higher rate becomes essential.
• Highlights of the Endowus-iCapital collaboration: Endowus is launching two innovative alternative asset class portfolios that provide clients with exposure to multiple evergreen, semi-liquid private market funds, in a single vehicle. The diversified private credit portfolio comprises strategies offered by industry leaders like Apollo, Ares, and Blackstone, while the new private equity portfolio offers access to private equity heavyweights such as Blackstone, Carlyle, EQT, Vista, and more — collectively managing over US$1 trillion in private equity assets. 
• Through a partnership with iCapital, these new solutions are now directly available via its market-leading app platform for Professional Investors in Hong Kong and Accredited Investors in Singapore. To learn more, reach out to our client advisors. 

Read more: Endowus launches bespoke private credit and private equity offerings

Beyond Public Markets: Private Markets and their Appeal

• Private equity’s strength lies in its ability to directly influence and improve portfolio companies through majority ownership and active management.
• This approach allows for comprehensive value creation strategies, including supply chain diversification, operational improvements, and strategic pivoting during challenging economic environments. As such, private equity can build more resilient companies that can withstand market fluctuations.
• Success in secondary investments relies heavily on extensive historical data that provides insights into thousands of companies, allowing for a nuanced understanding of potential investments and general partners (GPs) performance, deep relationships with GPs, and the ability to analyse an evolving market landscape.
• Private credit provides a more predictable and protected investment approach, using covenants and mechanisms like first-lien senior secure positions. This grants managers the ability to seize assets if payments are missed. 
• Infrastructure aims for lower-risk, lower-return propositions and typically demonstrates remarkable stability during economic disruptions, providing consistent cash yields and protecting investor interests. 
• A consistent theme among the GPs is the importance of track record of manager and the ability to navigate market cycles. Each stressed that true investment quality is revealed during market hardships, with superior managers demonstrating adaptability, strategic thinking, and the ability to create value when markets are challenging.
• The necessity of risk management was highlighted. Whether through structural protections in credit, careful portfolio construction in infrastructure, or detailed GP analysis in private equity, the ability to understand, price, and mitigate risk is fundamental to successful alternative investments.

Read more: Key takeaways from Endowus Private Markets & Hedge Funds Symposium

Enhance your odds of investment success with a time-tested investment approach

Market commentary, expectations, and consensus have significantly changed since the beginning of the year. This year is no exception, as uncertainty continues to prevail. In such times, it is crucial for investors to focus on what they can control – understanding their own investment profile and needs.

Equally important, one should acknowledge that without taking risks, it is impossible to achieve returns. The key is to assess and manage these risks effectively, taking only necessary risks at the lowest cost and with a higher probability of success. 

Start your investment journey with Endowus here. Believing in the mission to help everyone, our client advisors are always here to help