After a turbulent first half, the third quarter of 2026 brought further gains for global equities, but little relief for bonds amid rising global yields. Stocks built on their earlier recovery, while gold regained some ground after its sharp pullback in H1.
By the end of September, equity markets were firmly ahead for the year, while bonds and gold remained in negative territory, as illustrated in Exhibit 1 below.
Despite the uneven backdrop, our General Investing portfolios powered by StashAway (GISA) remained resilient over a longer horizon, returning 7.8% on average in USD terms over the past 12 months (versus 6.8% for their benchmarks) and 4.8% over the first nine months of 2026 (versus 4.6%).
The third quarter itself was more challenging: losses in bonds and parts of our equity allocation led to a modest 1.1% pullback on average in USD terms (versus -0.5%), while gold helped cushion the decline.
Our GISA portfolios remain driven by our Economic Regime-based Asset Allocation (ERAA®) investment framework. ERAA® continues to place us in an inflationary-growth regime, with economic growth holding firm and inflation staying elevated.
In this environment, we favour equities and gold, with an emphasis on technology as the AI theme develops, and towards cyclical sectors that benefit from economic expansion. Bonds still offer a source of income, but elevated long-term interest rates make their return outlook more challenging. (For more on global bond markets, see CIO Insights: Three forces behind higher bond yields.)
Through strategic positioning across global equities, bonds, and gold based on the prevailing macro environment, ERAA® helps manage risks such as inflation shocks and geopolitical uncertainty, while ensuring our portfolios remain broadly diversified and resilient across market cycles.
Here’s how the portfolios on our platform performed in Q3 and over the past 12 months:
- General Investing portfolios powered by StashAway
- General Investing portfolios powered by BlackRock
- Responsible Investing portfolios
- Shariah Global portfolios
- Thematic Portfolios
- Income Investing portfolio powered by J.P. Morgan Asset Management
- Singapore Investing portfolio
- Simple and Simple Plus portfolios
General Investing portfolios powered by StashAway
StashAway's General Investing (GISA) portfolios, guided by ERAA®, returned -1.1% in USD terms (-2.3% in SGD terms) on average in Q3, compared with an average decline of 0.5% in USD terms for their equity-bond benchmarks.
Despite the quarterly pullback, the portfolios remained resilient over a longer horizon, returning 7.8% in USD terms (6.7% in SGD terms) on average over the 12 months to 30 September 2026, ahead of their equity-bond benchmarks’ average return of 6.8% in USD terms.
Equities drove portfolio gains over the past year
Our equity allocations were a modest drag in Q3, as losses in US industrials as well as aerospace and defence outweighed gains in broader global equities, US healthcare and Japanese stocks. Over the past 12 months, however, equities remained the main driver of portfolio gains, led by global stocks and US technology. Healthy corporate earnings continue to support the broader equity backdrop, despite the more uneven quarter.
Gold’s Q3 recovery helped cushion a pullback
Gold regained some ground in Q3 following its first-half decline, helping to cushion weakness elsewhere in the portfolios. Over the past 12 months, it also contributed positively alongside equities, highlighting the value of holding a diversified mix of assets. We continue to prefer gold over government bonds as a defensive allocation amid elevated public debt and persistent fiscal deficits, with ongoing central bank buying reinforcing our constructive view.
Higher yields weighed on global bonds
Bonds were the main drag in Q3, with global government and broader bond exposures weighing on returns. Inflation concerns and expectations of tighter central-bank policy pushed yields higher, putting pressure on bond prices. Bonds also detracted over the past 12 months, although ultra-short-term US Treasuries provided a cushion in both periods, helped by their lower sensitivity to interest-rate changes.
General Investing portfolios powered by BlackRock
The General Investing portfolios powered by BlackRock (GIBR) returned 0.3% in USD terms (-1.0% in SGD terms) on average in Q3, compared with an average decline of 0.1% in USD terms for their benchmarks.
The portfolios returned 12.3% in USD terms (11.2% in SGD terms) on average over the 12 months to 30 September 2026, ahead of their benchmarks’ average return of 10.7% in USD terms.
Responsible Investing portfolios
Our Responsible Investing portfolios returned 0.4% in USD terms (-0.9% in SGD terms) on average in Q3, ahead of their equity-bond benchmarks, which were broadly flat on average in USD terms.
While quarterly returns were modest, longer-term performance was strong, with returns of 10.6% in USD terms (9.5% in SGD terms) on average over the past 12 months, compared with 9.1% on average for their benchmarks in USD terms.
Gains in US and global ESG-screened equities, alongside gold, more than offset bond losses in USD terms during Q3. Japanese equities and US healthcare also helped, while Indian equities weighed on returns. Over the past 12 months, equities were the main driver of stronger gains, with gold adding support despite weakness in bonds.
Thematic Portfolios
Our Thematic Portfolios focus on the long-term shifts reshaping the economy, from AI and digitalisation to healthcare innovation and the energy transition. These themes develop over years, with each progressing at its own pace. These portfolios’ targeted exposures can lead to more pronounced short-term swings, making a longer-term perspective important.
Technology Enablers
The Technology Enablers portfolios returned 4.5% in USD terms (3.2% in SGD terms) on average in Q3, extending their longer-term gains to 19.5% in USD terms (18.3% in SGD terms) on average over the past 12 months.
Cloud computing, cybersecurity and software led gains in Q3, more than offsetting weakness in robotics and semiconductors. The longer-term picture remained strong: AI and big data and semiconductors were the main drivers over the past 12 months, supported by cybersecurity. Software’s improvement in Q3 helped narrow its losses, although it was still a small drag over the full 12 months.
(For more on software, see CIO Insights: Ctrl+Alt+Delete on software?)
Future of Consumer Tech
The Future of Consumer Tech portfolios returned 0.0% in USD terms (-1.3% in SGD terms) on average in Q3, leaving performance broadly flat in USD terms. Over the past 12 months, returns were -0.9% in USD terms (-1.9% in SGD terms) on average.
Gains in internet companies and the video game industry in Q3 were offset by weakness in future mobility and fintech, with short-term US Treasuries helping to steady returns at some risk levels. Over the past 12 months, future mobility was a positive driver, but losses in fintech and video games outweighed those gains over that period. Unlike the other themes, Future of Consumer Tech remained slightly negative over that longer period.
Healthcare Innovation
The Healthcare Innovation portfolios returned 2.9% in USD terms (1.6% in SGD terms) on average in Q3, building on solid longer-term gains of 17.3% in USD terms (16.1% in SGD terms) on average over the past 12 months.
Biotechnology led gains in Q3, with medical devices and pharmaceuticals also contributing. However, medical devices remained a drag over the past 12 months. But stronger gains in biotechnology and pharmaceuticals more than offset that weakness, keeping overall returns firmly positive.
Environment and Cleantech
The Environment and Cleantech portfolios returned -6.3% in USD terms (-7.5% in SGD terms) on average in a difficult Q3. Despite the pullback, longer-term returns remained solid at 7.7% in USD terms (6.6% in SGD terms) on average over the past 12 months.
Clean energy and future mobility were the largest detractors in Q3, with smart-grid infrastructure, uranium and water-related companies also lower. Short-term US Treasuries provided a small cushion for some risk levels. Over the past 12 months, however, gains in future mobility, smart-grid infrastructure and clean energy outweighed weakness in water and uranium, leaving the portfolios ahead despite the Q3 setback.
Shariah Global portfolios
The Shariah Global portfolios invest in Shariah-screened equities and sukuk, or Islamic bonds. They returned 1.5% in USD terms (0.1% in SGD terms) on average in Q3. These modest quarterly gains built on strong longer-term performance, with returns of 18.7% in USD terms (17.5% in SGD terms) on average over the past 12 months.
Shariah-screened US and developed-market equities drove gains in Q3, with gold also helping. Emerging-market equities and sukuk held back returns. Over the past 12 months, equity gains were broader: developed and emerging markets both contributed positively, alongside gold, more than offsetting weakness in sukuk.
Income Investing portfolio powered by J.P. Morgan Asset Management
As of September 2026, the Income Investing portfolio powered by J.P. Morgan Asset Management returned -3.1% in SGD terms in Q3 and -1.1% over the past 12 months.
(For more on JPMAM’s market commentary, read: Income Investing Update: August 2026.)
Singapore Investing portfolio
The Singapore Investing portfolio was broadly flat in Q3, but remained ahead over a longer horizon with a 5.0% return over the past 12 months.
Singapore equities provided support in Q3, with strong bank earnings helping lift the market. This helped offset weakness in bonds and REITs, which faced pressure from rising yields and renewed interest-rate concerns. Over the past 12 months, Singapore equities were the main driver of gains, with high-yield bonds adding support. Together, these gains more than offset weakness in REITs and Singapore government and corporate bonds.
Simple and Simple Plus portfolios
Simple returned 0.3% in SGD terms in Q3 and 1.5% over the past 12 months. Its money market and enhanced liquidity funds contributed positively in both periods. These funds invest in very short-term instruments, which helps Simple prioritise stability while earning income.
Simple Plus declined 0.4% in SGD terms in Q3 as recent bond-market weakness weighed on its short-duration bond funds, though it was partly cushioned by its ultra-short-duration allocation. Despite the setback, returns were positive at 0.9% over the past 12 months. The portfolio’s underlying bonds continue to generate interest income even when prices fall, and that income can help offset those losses over time. A holding period of at least 12 months for Simple Plus gives this income more time to accumulate.
Simple and Simple Plus returns include underlying fund fees, but are before fee rebates and StashAway management fees. These are cumulative returns, not annualised yields.
Disclaimers:
Model portfolio returns are expressed in gross terms before fees, withholding taxes, and reclaims on dividends. They are provided only as a gauge of pure performance before other items.
Actual account returns may deviate from the model portfolios due to differences in the timing of trade execution (e.g. during the day vs close), timing differences and intraday volatility of reoptimisation and rebalancing, fees, dividend taxes and reclaims, etc.
Past performance is not a guarantee for future returns. Before investing, investors should carefully consider investment objectives, risks, charges and expenses, and if need be, seek independent professional advice.
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