StashAway’s Q3 2026 Returns

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.

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.

General Investing portfolios powered by StashAway

StashAway’s General Investing (GI) portfolios, guided by ERAA®, returned 1.9% on average in GBP terms, the base currency of the underlying ETFs in this portfolio (1.8% in MYR terms) in Q3. Over the past 12 months, they returned 19.8% on average in GBP terms (114.6% in MYR terms).

Equities drove portfolio gains over the past year

Our equity allocations added to returns in Q3. Gains in US and global stocks, led by technology, along with Japanese equities and healthcare, more than offset softer emerging markets and infrastructure. Japanese stocks also benefited from a stronger yen. Over the past 12 months, equities remained the main driver of portfolio gains, with our US and global allocations helped by their tilt towards 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 and over the past 12 months, 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. Longer-dated Treasuries and corporate bonds were hit hardest, while short-dated Treasuries held up better. Inflation-linked bonds offered little protection, as rising real yields outweighed the benefit of higher inflation.

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.

This communication is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to purchase any financial product or subscribe or enter any transaction.

This communication does not take into account your personal circumstances, e.g. investment objectives, financial situation or particular needs, and shall not constitute financial advice. You should consult your own independent financial, accounting, tax, legal or other competent professional advisors.