Thumping corporate earnings and an emerging path to peace in the Iran War propelled markets back to record highs in April – the best month for markets since 2020. This validated our view that risk assets were oversold in March on fears around the Iran War.
In equities, accelerating cloud revenue and data centre backlogs led to exceptional earnings. The AI “hyperscalers” now plan to spend over $700 billion on AI infrastructure in 2026 (up from ~$420 billion estimated last year). Global stocks rallied, led by semiconductor names (+40%). In a nod to US economic resilience, the earnings upswing spread beyond tech. 84% of reporting S&P 500 companies beat estimates.
Beyond the US, chips-heavy South Korea (+37%) and Taiwan (+27%), the markets hardest hit by the Iran conflict, were standout winners. They fully recouped war-led losses and contributed to emerging markets’ gains 14.7%. Developed markets also participated in the rally. European stocks and MSCI World ex-US both added about 7%.
Bonds advanced. Energy-driven price pressures kept government bond yields elevated (Brent crude stayed above $100 per barrel), with UK 10-year yields hitting an 18-year high. But the global risk-on pivot led credit spreads to tighten sharply. High yield bonds outperformed, returning 2.6% for the month.
Looking ahead, US interest rate cuts are likely delayed, but not denied. Near-term oil shock should be viewed in the context of more structural disinflationary forces (e.g. productivity gains, lowering shelter costs, cooling wages) in the US economy. With earnings momentum building and the market rally broadening, the outlook turned decisively more constructive in April for patient and diversified investors.
Income+ Performance
In April 2026, Income+ Max rose 1.73%, Income+ Enhance went up by 2.15%. Income+ Pure edged 1.09% higher. Through its lower-beta defensive equity allocation and high payout strategy, it serves as a stabilizing anchor in multi-asset portfolios, helping to reduce concentration risk in technology stocks.
Income+ remains a go‑to for steady income. Falling bond prices mean rising yields, offering an attractive entry point for long-term income investors. Syfe, Income+ is one of the most popular portfolio selections, continues to attract investors seeking regular monthly payouts, targeting a 6.0% – 10.0% p.a. dividend yield. It has had an encouraging 100% achievement rate since inception. With our selected best-in-class funds and Syfe’s active management, Income+ can ride on the ups and downs in the market, offering relatively stable yield potential while managing downsides.
Pure Individual Fund Performance
Enhance Individual Fund Performance
Max Individual Fund Performance
Outperforming Benchmark
Source: Syfe. Product issuers, data providers. As of 30 Apr 2026 in the denominated currencies. Subject to rounding. Each portfolio may vary due to different times of deposits, withdrawals & weighting.
Looking Ahead
Global government bond yields surged to multi-year highs—including the 30-year US Treasury hitting 5.2% and 10-year hitting 4.6% —driven by fears of a Fed rate hike amid skyrocketing inflation and >$100 oil. Rates stay higher for longer. Bond prices are sensitive to the yield curve. For our income portfolios, we hold average short to medium duration positions, hence relatively less sensitive compared to longer duration bonds. Markets continued to price in delayed (but not cancelled) interest rate cuts. Dips in the market may provide attractive entries for investors seeking passive income to further build medium long term positions. Stay invested and dollar-cost-average.
1. Higher Yields = Better Future Income Opportunities
The recent rise in bond yields, while causing short-term price declines, has made new investments in fixed income significantly more attractive. For portfolios like Income+ Pure and Enhance, this means you can now lock in higher coupon/interest income for the years ahead. The income component of your portfolio is now on a stronger footing. Patient investors who continue to hold or gradually add positions are positioned to benefit from these elevated yields over the medium to long term.
2. Defensive Equities and Shorter Duration Bonds Provide Relative Resilience
Your defensive equity holdings (lower beta) and shorter-duration bond exposure (e.g., average duration <5 years in Enhance and Pure) have helped cushion the impact compared to longer-duration. While volatility still occurs, these characteristics are working as designed — offering better downside protection during uncertain periods. History shows that staying invested through yield spikes and geopolitical events has generally rewarded disciplined investors.
3. Focus on Total Return and Income Compounding Over Time
Short-term price fluctuations are normal, especially in a “higher for longer” rate environment. By staying invested and using strategies like dollar-cost averaging during dips, you allow the higher income to compound and benefit from eventual market recovery. Missing the best recovery days by trying to time the market has historically been far more costly than enduring temporary drawdowns.
If you have any questions or need assistance, please feel free to reach out to our Investment Advisory team via email or WhatsApp at +852-57162416.
Here’s to your investing journey,
The Syfe Team
Please note that past performance is not indicative of future results. Investments are subject to market risks, including the potential loss of principal. The information contained herein is for general information and reference purposes only. Information on this website is not and should not be construed as an offer to sell, or a solicitation of an offer to buy any security, investment product or service, nor a distribution of information for any such purpose. It is not intended to form the basis of any investment decision. Investors should not make any investment decision based solely on the information and services provided herein. Before making any investment decision, investors browsing this website should consider his/her own circumstances including but not limited to his/her financial situation, investment experience and investment objectives, and should understand the nature, terms and risks of the relevant investment funds in detail. Unless otherwise specified, all historical figures shown are for illustration purposes only and not necessarily indicative of future performance. All forms of investment carry risks, including fluctuation of prices of fund units and the possibility of loss of the capital invested. Please ensure that you fully understand the risks and costs involved by reading the Risk Disclosure Statement. Some of the fund(s) mentioned above have not been authorised by the Securities and Futures Commission (“SFC”) in Hong Kong. Please seek professional advice from an independent financial consultant where necessary. Syfe Hong Kong Limited (“Syfe”) is a Hong Kong Corporation licensed by the SFC (CE No. BRQ741) under Types 1 (Dealing in Securities), 4 (Advising on Securities), and 9 (Asset Management) for conducting relevant investment activities.
