We are raising the payout targets for the Endowus Income Portfolios. Their latest payout target ranges are: 5% to 6% for the Stable Income portfolio, 5.5% to 6.5% for the Higher Income portfolio, and 3.5% to 4.5% for the Future Income portfolio.
This is because mark-to-market declines in portfolio prices, coupled with an incremental increase in payout amounts, have driven payout yields higher.
The forward-looking income and capital appreciation potential has improved for the Endowus Income Portfolios, on the back of a higher interest rate environment and more attractive valuations for both fixed income and equities as compared to a year ago.
In 2022, all three Endowus Income Portfolios performed in line with expectations, and also consistently met their payout targets.