Digital wealth management platform Endowus has introduced Income Enhanced Portfolios, which are designed for investors seeking greater downside protection or looking for higher income returns.

The “conservative” portfolio leverages a strategic blend of traditional fixed income and liquid alternative strategies. It aims to deliver improved risk-adjusted return with an attractive level of income.

This strategy is built for investors who want reliable income streams with a strong focus on capital preservation. It starts with a traditional investment-grade fixed income core, then layers in additional return drivers to make the portfolio more resilient through market cycles.

This includes using absolute-return fixed income funds where returns are less tied to market swings. Expert manager selection also plays a key role in adding additional manager alpha to the portfolio. The result is a balanced and defensive income solution that seeks better risk-adjusted outcomes than a typical long-only bond fund.

The “aggressive” portfolio, on the other hand, is designed for those with higher risk tolerance. It seeks higher income and total returns by venturing beyond traditional high yield into areas such as emerging and frontier markets, additional tier 1 ( AT1 ) securities, and credit default swaps ( CDS ), capturing additional yield potential and diversification benefits.

Rather than relying solely on traditional high-yield corporate bonds, the portfolio taps into a broader universe of income opportunities – including frontier markets bonds, emerging markets debt, and financial credit instruments – each chosen for the ability to complement one another and offer differentiated sources of return. By spreading risk across these varied credit markets and pairing them with experienced fund managers, the strategy aims to deliver a more powerful, yet still thoughtfully managed, income stream over time, Endowus says.

To deliver the differentiated approaches, Endowus works with specialized fixed income managers, such as Algebris Investments, Barings, Man Group, RBC BlueBay, and UBP Asset Management.

Samuel Rhee, chairman and group chief investment officer of Endowus, says: “Income investing isn’t about chasing the highest yield. It’s about achieving better risk-adjusted outcomes while still meeting your income needs. With this strategy, we’ve taken a more intentional approach to manage risks more deliberately so investors can pursue yield with greater resilience through different market cycles.”