Global funds sector review – how markets have performed in 2026 so far

The conflict in the Middle East continues into its eighth month and the effects are being felt by economies around the world. Having looked beyond the short-term implications for the first few months of the conflict, investors are starting to pay more attention to the broader impacts.

This article is for information only and not personal financial advice. Investing can help your money grow but the value of investments, and any income from them, can rise and fall, so you could get back less than you put in. Investing is for the long term, typically 5 years or more.

If you’re not sure whether investing is right for you, a financial adviser can help.

Rates on the rise

Inflation is sitting stubbornly above target for many central banks. This has forced interest rate hikes from the US Federal Reserve, European Central Bank, and Reserve Bank of Australia. The Bank of England held rates unchanged at their most recent meeting, although a third of committee members favoured an increase.

Higher oil prices have been a key driver of inflation this year. Not only are direct energy costs affected, but these can filter through into the wider economy by way of higher transport and production costs. If the situation persists the longer-term negative consequences for inflation and overall economic health could increase.

How are stock markets performing?

Despite the uncertain economic outlook, stock markets have remained resilient.

Global markets, represented by the MSCI All Country World Index (ACWI), gained 1.6%* in the three months to the end of September 2026. The US and UK were among the strongest performers, with the S&P 500 and FTSE All Share rising 2.2% and 2.4% respectively. The MSCI Europe ex UK index fell 2.7% with markets in Asia ex Japan also falling.

This is a short period of time over which to assess performance and the latest quarter comes at the end of a strong year for most markets.

Energy has been the top performing sector, with companies buoyed by higher oil prices.

Technology companies also performed well. The artificial intelligence (AI) trend shows no signs of letting up and businesses embedded in supply chains have continued to generate positive growth for investors.

Consumer sectors sit at the other end of the performance table, with rising economic uncertainty, including sticky inflation, hitting consumer sentiment.

How have Wealth Shortlist funds performed?

The global equity funds on the Wealth Shortlist have delivered varying returns over the past 12 months. We expect this, as managers have different styles and areas of focus, which perform differently in different economic conditions. Past performance isn’t a guide to the future, and the performance here is over a short period of time.

Investing in funds isn't right for everyone. Investors should invest only if the fund's objectives are aligned with their own and the investment should form part of a diversified portfolio.

For more details on each fund, its charges, and specific risks, please see the links to their factsheets and key investor information.

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What happened to software stocks after the AI-driven “SaaSpocalypse”?

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Senior Equity Analyst

The investments in technology companies, which is not an area the managers often invest in, detracted from performance. Most of the fund’s technology investments are in software-related companies, which have struggled over concerns that AI will disrupt their business models.

The fund can invest in smaller companies as well as emerging markets, both of which increase risk. The fund is also concentrated, meaning that each investment can contribute significantly to returns, although this approach is higher risk.