Global markets maintained their momentum through August, supported by resilient earnings, a rotation into non-US equities, and mounting expectations that central banks are finally pivoting towards rate cuts. The MSCI All-Country World Index climbed +2.5% for the month, while global bonds rose +1.5%, offering investors a broad-based lift across both equities and fixed income.

Earnings season provided a welcome tailwind, with the majority of companies posting stronger-than-expected results. However, not all was smooth sailing. Nvidia, one of the key drivers of the artificial intelligence boom, reported robust overall earnings but missed forecasts in its data centre segment. That stumble sparked some caution about whether the AI-fuelled rally can continue at its current pace.

What stood out most in August was the strength outside of the US. Chinese equities continued their rally, with the MSCI China Index advancing more than +5% and the China Internet ETF (KWEB) surging nearly +7%. Both are now up over +20% year-to-date, delivering a meaningful boost to emerging market allocations. European markets also performed strongly, rising +3% in August and +16% year-to-date, helped by resilient economic data. That said, political uncertainty in France weighed slightly on investor sentiment.

Source: Google Finance, as of Sept 2025

Meanwhile, gold extended its impressive climb to +24% year-to-date, quietly underscoring its role as a portfolio diversifier and volatility buffer. 

In contrast, commodities such as oil and gas gave back some gains in August after months of strength.

The monetary policy backdrop remains the most important driver. Weaker US labour market data combined with Federal Reserve Chair Jerome Powell’s dovish remarks at the Jackson Hole symposium reinforced market expectations of a September Fed rate cut. Investors will be closely watching not only the Fed, but also the European Central Bank, Bank of England, and Bank of Japan in the months ahead. Rate decisions, alongside ongoing geopolitical risks, are likely to set the tone as we move into September and the final quarter of 2025.

Portfolio Performance

Syfe Portfolio	Performance	Benchmark Performance
Core Equity100	+1.86%	+1.36%
Income+	+1.12%	+0.32%
REIT+	+4.58%	+2.28%
China Growth	+9.07%	+3.80%
Healthcare Innovation	+4.67%	+4.20%
ESG and Clean Energy	+1.85%	+1.32%
Disruptive Tech	+1.43%	+0.76%

Core Equity100

The Core Equity100 portfolio delivered a solid +1.86% return in SGD terms in August, comfortably outperforming its benchmark, the MSCI ACWI, which gained +1.36%. Mega-cap tech stocks and the AI rally remained key drivers of performance, though sentiment was tempered by softer US employment data and the weaker dollar. With its high-growth tilt and broad global exposure, Core Equity100 remains well positioned to benefit from long-term structural trends while weathering near-term market shifts.

Income+

Income+ gained +1.12%, outperforming the Bloomberg Global Aggregate Credit Index (SGD-hedged), which rose only +0.32%. Bond yields fluctuated during the month, creating some headwinds, but active management cushioned the impact. Income+ continues to demonstrate resilience by balancing attractive yield potential with strategies designed to limit downside risk—a valuable feature in today’s uncertain rate environment.

REIT+ (100% REITs)

The standout performer this month was REIT+, which returned +4.58%, significantly ahead of the iEdge S-REIT Leaders Index’s +2.28%. Optimism around near-term Fed rate cuts, coupled with improving rental trends, helped drive S-REITs higher. Local reforms and liquidity measures also played a supporting role. With expectations of easier monetary policy and attractive dividend yields, the S-REIT recovery looks set to continue into the year’s final months.

(Further reading: Why S-REITs Could Be Poised for a Bounceback in 2025)

Thematic Portfolios

All of Syfe’s thematic portfolios outperformed their respective benchmarks in August, highlighting the value of diversified exposure to high-conviction investment themes:

• China Growth: +9.07% vs MSCI China Index +3.80%
• Healthcare Innovation: +4.67% vs benchmark +4.20%
• ESG & Clean Energy: +1.85% vs MSCI ACWI ESG Universal +1.32%
• Disruptive Tech: +1.43% vs MSCI ACWI IMI Disruptive Technology Index +0.76%

The strong showing in China Growth was particularly notable, underscoring how investor confidence has returned to the Chinese market after a period of underperformance.

Key Trends to Watch

1. The Fed Pivot

Markets have all but priced in a Fed rate cut in September. This could mark the start of a new easing cycle, with implications across asset classes—from cheaper funding costs for real estate to renewed strength in fixed income. Investors should also monitor other central banks, as global monetary easing could create a synchronized boost for risk assets.

2. REITs on the Rise

S-REITs are back in focus. Retail investors have been net buyers of around $570 million worth of S-REITs year-to-date (as of August 26, according to The Edge Singapore). Attractive yields, supportive reforms, and the prospect of falling rates have created a perfect backdrop for recovery.

3. Gold’s Record Run

Gold prices have hit new highs this year, supported by Fed pivot expectations and ongoing diversification by central banks away from the US dollar. For investors, gold continues to serve as a resilient store of value and a hedge against volatility, particularly in portfolios exposed to equity swings.

4. Global Equity Rotation

While US mega-cap tech has dominated headlines, August showed that opportunities exist elsewhere. China and Europe’s strong performance demonstrates that diversification across regions can pay off, especially in periods when US growth momentum slows.

What’s New at Syfe

REIT+ Momentum Builds

The Syfe REIT+ portfolio continues to see strong demand from investors seeking yield and diversification. Offering an estimated 5.76% p.a. dividend yield, REIT+ is fully managed—dividends are reinvested automatically and portfolios are regularly rebalanced. For investors looking to ride the REIT recovery while keeping things simple, REIT+ remains a compelling option.

Growing Interest in Gold

Syfe’s Gold Bundle has also gained traction, particularly as gold prices set fresh records. The bundle provides more than just exposure to gold ETFs—it includes miners and junior explorers, offering a more comprehensive way to tap into the gold ecosystem. Investors can start with as little as US$100, and benefit from 50% off commission fees as part of Syfe’s bundle offering.

Conclusion

August underscored the importance of diversification. Equities delivered solid gains, REITs staged an impressive rebound, and gold continued to shine as a portfolio stabiliser. With a Fed rate cut looming in September, the investment landscape is shifting once again. For investors, the key lies in staying balanced: maintaining exposure to growth opportunities in equities and themes like AI and China, while anchoring portfolios with income strategies, REITs, and resilient assets like gold.

The road ahead is marked by opportunity, but also uncertainty. A diversified portfolio—across geographies, asset classes, and themes—remains the best way to capture upside while managing risk.

Read More:

What a Fed Rate Cut Means for Singaporean Investors
What’s Driving the Growth in Singapore Retail REITs in 2025
How to Invest in the Growing AI Landscape in Singapore
A Deep Dive Into Gold: Still a Must-Have in Today’s Market?