Global markets extended their rally in August. Syfe Core portfolios outperformed benchmarks once again, supported by global diversification. 

Global markets stayed strong in August, buoyed by resilient earnings, broad-based rallies in China and Europe, and growing expectations of a Fed rate cut in September. 

China continued as the standout performer, meanwhile, Europe benefited from solid economic data despite lingering political risks. Gold also continued its strong run, providing stability against volatility in sectors like technology.

Against this backdrop, Syfe’s Core portfolios outperformed benchmarks, highlighting the strength of our diversified approach across equities, fixed income and gold. Our flagship Core Equity100 delivered almost 2% compared to the MSCI ACWI 1.4% and leads the benchmark by over 1% for the last year, mainly driven by our geographic exposures.

Note: All returns throughout the article are quoted in SGD.

Key Highlights and What They Mean for You

These highlights not only show where returns came from in August, but also illustrate how our approach translates into stronger outcomes for our investors.

1. Global exposure continues to pay off

Source: Syfe research, Aug 2025

Our strategic geographic allocations continue to deliver, with China still leading the way followed by Europe.

Our China positions, MSCI China ETF (MCHI) and KraneShares CSI China Internet ETF (KWEB) gained 5 & 7% respectively in August, and both have rallied more than 20% YTD.

Our exposure to Developed Markets ex-US (EFA) also contributed strongly, returning 3% in August and 16% year-to-date.

This supports our conviction in maintaining a diversified geographic exposure, which allows us to capture growth opportunities beyond the US while balancing regional risks.

2. Factor Comeback in Size, Value & Quality

After a muted first half, factor exposures staged a rebound. Our position in Dimensional US Targeted Value ETF (DFAT), which tilts toward Size, Value and Quality, gained 7% in August and was the single largest contributor to Equity100’s monthly return.

This matters because factors like Size, Value and Quality remain a foundational part of our long-term Investment strategy. They are scientifically shown to enhance returns over the long-term, even if they sometimes underperform in shorter periods.

3. Gold Steadies Multi-Asset Portfolios

Gold extended its strong 2025 rally further in August, now up 24% year-to-date. This made it one of the largest contributors to our Core Growth, Balanced and Defensive portfolio returns whilst also providing diversification and resilience, smoothing overall portfolio volatility.

Source: Syfe research, 31 August 2025

Looking Ahead

Uncertainty is a constant in investing, but so is opportunity. Here’s what our investment team is monitoring:

• The September Fed meeting will be closely watched as markets expect an almost certain rate cut.
• Geopolitical uncertainty and tensions remain elevated across the globe including the US, South Korea, Japan and France.
• As part of our ongoing research efforts we are finalising our next rebalance of the Core portfolios scheduled for October, stay tuned for more details.

We continue to take a long-term, research-driven view, focused on building resilient portfolios that can navigate both upside and downside risks.

Investment Strategy

Our role is to help clients stay invested with confidence, through both volatility and opportunity. Based on current market conditions:

• Automate investing with auto‑invest to stay consistent and avoid market timing.
• Stay diversified with Core portfolios, across geographies and asset classes; dollar‑cost averaging (DCA) helps smooth market entry.
• Add satellite exposure through thematic portfolios, for example China Growth or Disruptive Tech, to complement Core portfolios.

To learn more or start investing with confidence, visit the Syfe app today.

If you have any questions, feedback or there are other topics you would like to hear more on then please don’t hesitate to reach out at [email protected].