FSM Global Recommended Funds List 2026/27: Discover the Best-In-Class Equity Funds

• The 2026/27 FSM Global Recommended Funds List features 45 funds across equity and fixed income, comprising 29 curated equity strategies designed to capture opportunities across global markets.
• We introduce iFAST-Amova Singapore Equity A SGD as our new recommended Singapore equity fund, giving investors exposure to both large-cap leaders and the often-overlooked small- and mid-cap segment.
• We have selected M&G (Lux) Asian A Acc USD as our recommended Asian equity fund. The fund uses a bottom-up, valuation-conscious approach in a market where opportunities are increasingly dispersed.
• Amova Japan Equity SGD joins the list to capture Japan’s structural transformation, including AI-driven manufacturing, stronger domestic consumption and the normalisation of interest rates.

It is that exciting time of the year again – our annual update of the FSM Global Recommended Funds List is here!

Since 2001, our research team has been publishing this list to help investors navigate the growing universe of funds on our platform. By carefully selecting high-quality funds, we aim to make the investment journey smoother and more focused for investors.

As always, this year’s list spans both equity and fixed income strategies, covering global, regional, single-market, and sector-focused funds. For the 2026/27 edition, we have shortlisted 45 recommended funds that have consistently delivered strong, risk-adjusted returns relative to their peers.

In this article, we highlight the key updates to the equity section of our list.

For our recommended fixed income and balanced funds, check out the article below!

FSM Global Recommended Funds List 2026/27: Our top choices for Bond and Balanced Funds!

2026/27 Recommended Equity Funds

The 2026/27 list comes against a particularly challenging market backdrop.

Markets have had to contend with sharp swings in geopolitical risk, oil prices, artificial intelligence and semiconductor investment, as well as changing expectations for global monetary policy. In the first quarter, concerns surrounding the closure of the Strait of Hormuz and a spike in oil prices dominated sentiment. By the second quarter, investor attention had swung towards the extraordinary enthusiasm surrounding AI infrastructure spending and the semiconductor cycle. More recently, the focus has increasingly shifted towards the direction of interest rates.

The lesson is clear: market leadership can change quickly. A fund that performs well in one particular market regime may not necessarily be the best choice when the next regime arrives. Therefore, our selection process looks beyond headline performance. We favour managers with a clear and repeatable investment process, strong risk management and the ability to generate returns across different market conditions and over longer investment horizons.

Diversification is equally important. While particular markets, sectors or investment styles can dominate performance for extended periods, leadership can shift rapidly — as we have already seen this year. Our Recommended Funds List therefore spans different markets, regions and sectors, allowing investors to build a more diversified portfolio rather than relying on a single investment theme.

For the 2026/27 edition, we feature 45 recommended funds, including 29 equity strategies. Together, we believe these funds provide investors with a focused starting point for building portfolios that can participate in long-term growth while remaining resilient through periods of market volatility.

Table 1: 2026/2027 Recommended Equity Funds List

Core Equity
Category	2026 Proposed Recommended Fund
Asia (APAC) Ex Japan	Fidelity Asia Pacific Dividend A-USD
	M&G (Lux) Asian A Acc USD
Asia Ex Japan (Small Cap)	Fidelity Asian Smaller Companies A-ACC-SGD
Japan	Amova Japan Equity SGD (formerly Nikko AM)
Japan (Small Cap)	BNP Paribas Japan Small Cap Classic Cap SGD
Global	Allianz Best Styles Global Equity Cl AT Acc USD
	Allspring Global Equity Enhanced Income A Dis USD
Global Emerging Markets	JPMorgan Funds - Emerging Markets Dividend A (mth) USD
US	PineBridge US Large Cap Research Enhanced A USD
	BNP Paribas Responsible US Value Multi-Factor Equity Classic Cap USD
US (Small to mid Cap)	Blackrock US Mid-Cap Value A2 USD
Europe	M&G (Lux) European Strategic Value A Acc USD
Europe (Small Cap)	BNP Paribas Europe Small Cap Classic Cap EUR
Digital Economy	Eastspring Investments Unit Trusts - Global Technology SGD
	Fidelity Global Technology A-ACC-USD
Supplementary Equity
Category	2026 Proposed Recommended Fund
ASEAN	United ASEAN Fund SGD
Greater China	LionGlobal China Growth SGD
Latin America	JPMorgan Funds - Latin America Equity A (acc) SGD
Asia Pacific Property	Janus Henderson Horizon Asia-Pacific Property Income A3 SGD
Global Financials	Blackrock World Financials A2 USD
Global Healthcare	Manulife Global Fund - Healthcare AA Acc SGD
Infrastructure	BNY Mellon Global Infrastructure Income B Acc USD
Global Property	Nordea 1 - Global Real Estate BP USD
Global Resources	Ninety One Global Strategy Fund - Global Natural Resources A Acc USD
China	Fidelity China Focus A-SGD
China-Local	Blackrock Systematic China A-Share Opportunities A2 USD
India	Nippon India Investment Unit Trust - Nippon India Equity A SGD
Singapore	iFAST-Amova Singapore Equity A SGD
South Korea	LionGlobal Korea Fund SGD
Source: iFAST Compilations. Data as of 9 September 2026.

Notable changes in this year’s list

A Small-cap-inclusive, growth-oriented approach to Singapore: iFAST-Amova Singapore Equity A SGD

One of the most significant changes this year is our new recommendation in the Singapore equity category. While our previous selections focused on larger companies, the MAS Enhanced Equity Market Development Programme (EQDP) and renewed interest in smaller companies could create a more supportive environment for the local small- and mid-cap segment. We therefore believe investors should look beyond traditional large-cap names and consider managers with the flexibility to capture opportunities across Singapore’s broader equity market.

This is where iFAST-Amova Singapore Equity A SGD stands out.

The fund is built around two complementary investment ideas. First, it looks for smaller companies with compelling valuations and strong asset backing. Second, it seeks companies aligned with the “New Singapore” growth story, including technology enablers, renewable energy and decarbonisation, and digital infrastructure.

The result is a portfolio that looks meaningfully different from the STI. Singapore’s banks remain important anchors, but the fund has lower reliance on financials. As of 31 July 2026, the sector was 11.2% underweight relative to the STI. In contrast, the fund had substantial overweight positions in industrials and technology, reflecting the managers’ more growth-oriented view of Singapore’s investment landscape.

The portfolio provides exposure to names such as Yangzijiang Shipbuilding, Keppel and Singapore Technologies Engineering, alongside smaller companies that are largely absent from the STI such as EGP Energy Corp.

Figure 1: Sector allocations of the fund

Table 2: Top 10 holdings of the fund and the STI index

Holdings	Sector	iFAST-Amova Singapore Equity	STI Index
DBS Group Holdings	Financials	20.3%	28.7%
Overseas-Chinese Banking Corp	Financials	16.1%	18.0%
Singapore Exchange	Financials	5.5%	3.8%
United Overseas Bank	Financials	4.9%	10.0%
Yangzijiang Shipbuilding	Industrials	3.8%	-
Sea Limited	Consumer Discretionary	2.9%	-
Keppel	Industrials	2.9%	3.1%
Singapore Technologies Engineering	Industrials	2.8%	2.9%
EGP Energy Corp	Energy	2.4%	-
Yangzijiang Maritime Development	Financials	2.4%	-
Source: iFAST Fund Management, State Street, iFAST Compilations. Data as of 31 July 2026.

The fund’s broader opportunity set has also contributed to its strong performance. By investing earlier across the smaller-cap universe and maintaining exposure to structural themes such as manufacturing, semiconductors and technology, the fund has outperformed the STI and Singapore equity fund peers over the YTD, one-year and three-year periods (Figure 2).

Importantly, the growth tilt has not come at the expense of downside management. The fund’s three-year maximum drawdown was -13.5%, slightly better than the -14.4% recorded by the STI and -14.0% for Singapore equity fund peers on our platform.

This combination — broader market exposure, a tilt towards structural growth and disciplined downside management — is why we believe the fund offers a differentiated way to participate in Singapore’s next phase of equity-market development.

Figure 2: The fund demonstrated strong performance

A bottom-up approach to capturing Asian alpha: M&G (Lux) Asian A Acc USD

Asia’s equity markets have become increasingly polarised in 2026. South Korea and Taiwan were among the strongest-performing markets in the first half of the year, benefiting from the AI hardware cycle and their leadership in memory chips, foundry capacity and advanced semiconductor manufacturing. Other markets, including China and India, have been less impressive by comparison.

But this divergence is precisely where active management can add value. When an entire market falls out of favour, valuations can become disconnected from the underlying fundamentals of individual companies. This can create opportunities to buy businesses with strong balance sheets and attractive long-term prospects at more reasonable valuations.

That is the opportunity we see in M&G (Lux) Asian A Acc USD.

The fund takes a bottom-up approach, looking for companies where the market price does not fully reflect the underlying value of the business. The manager combines this valuation discipline with a margin-of-safety approach and active risk management. The result is a high-conviction portfolio of 77 stocks as of 31 July 2026.

The portfolio is deliberately different from the benchmark. Taiwan is underweight, partly reflecting the fund’s 10% single-stock investment limit on TSMC, while the manager has found more attractive opportunities among Chinese technology and consumer companies and Korean businesses that could benefit from corporate “Value-up” initiatives.

The portfolio’s sector positioning also highlights the fund’s differentiated approach. Information Technology remains the largest sector at 31.0%, but this is still around 9% below the benchmark. Rather than simply increasing exposure to the year’s strongest-performing AI hardware names, the manager has allocated capital across a broader range of companies where the risk-reward balance appears more attractive. Its largest positions include major Asian technology and financial franchises, alongside significant active positions in companies such as HDFC Bank, United Overseas Bank and KE Holdings (Table 3).

Figure 3: Sector allocations of the fund

Table 3: Top 10 holdings of the fund and the MSCI APAC ex Japan Index

Holdings	Sector	M&G (Lux) Asian Equity	MSCI APAC ex Japan Index
Taiwan Semiconductor Manufacturing	Information Technology	10.5%	15.1%
Samsung Electronics	Information Technology	8.0%	7.9%
SK Hynix	Information Technology	5.7%	5.5%
Tencent Holdings	Communication Services	3.1%	3.1%
HDFC Bank	Financials	3.1%	0.7%
Amcor	Materials	2.7%	0.0%
Alibaba Group Holding	Consumer Discretionary	2.6%	2.1%
AIA	Financials	2.2%	0.9%
United Overseas Bank	Financials	2.1%	0.3%
KE Holdings	Real Estate	1.8%	0.1%
Source: M&G Investments, iFAST Compilations. Data as of 31 Jul 2026.

The fund’s lower technology exposure has been a near-term headwind. It has slightly lagged its benchmark year-to-date, which is understandable given the strength of the AI hardware trade and the fund’s significantly lower exposure to Information Technology.

However, looking beyond this year’s market leaders tells a different story. The USD A Accumulation share class has outperformed both its benchmark and peer average over the one-, three- and five-year periods (Figure 4).

Its differentiated positioning has also helped limit downside risk. Over five years, the fund recorded a maximum drawdown of -25.2%, compared with slightly more than 30% for both the benchmark and peer group.

For investors looking for an Asian equity strategy that is not simply a bet on the latest market leader, we believe M&G Asian offers an attractive combination of active stock selection, valuation discipline and downside awareness.

Figure 4: The fund has consistently outperformed over the 5-year window

Capturing Japan’s AI boom and structural transformation:  Amova Japan Equity SGD

Japan’s structural transformation remains a compelling long-term investment story. Corporate governance reforms are improving shareholder focus, while wage growth supports domestic demand and monetary-policy normalisation benefits financial institutions. Japan’s strength in semiconductor equipment and industrial machinery also positions it to benefit from continued AI-related investment. Together, these trends create multiple avenues for Japanese equities.

To capture this broad opportunity set, we have selected Amova Japan Equity SGD as our recommended Japanese equity fund.

The fund takes an unconstrained approach, with meaningful exposure to smaller companies where the investment team believes market research coverage is less extensive and valuations may not fully reflect their long-term potential. This flexibility is important because Japan’s opportunity set extends well beyond the country’s largest and most familiar companies.

As of 31 July 2026, industrials accounted for 29.4% of the portfolio, reflecting the managers’ conviction in demographic-driven automation and AI-related machinery demand. Consumer companies represented 17.3%, providing exposure to the strengthening domestic-demand story, while financials accounted for 13.9%, reflecting the potential benefits of higher interest rates for financial-sector profitability (Figure 4).

The fund’s individual holdings further demonstrate this breadth. Alongside major Japanese banks and large industrial and consumer companies, the portfolio has meaningful positions in smaller companies such as DMG Mori and Nisshinbo Holdings (Table 5).

Figure 5: Top sector allocations

Table 4: Top 10 holdings

Holdings	Sector	Amova Japan Equity	TOPIX
Mitsubishi UFJ Financial Group	Financials	5.1%	4.0%
Sumitomo Mitsui Financial Group	Financials	3.8%	2.6%
Toyota Motor Corp.	Consumer Discretionary	3.5%	2.7%
Sony Group Corporation	Consumer Discretionary	3.4%	2.3%
Hitachi, Ltd.	Industrials	2.7%	2.4%
Mitsui & Co., Ltd	Industrials	2.7%	-
DMG Mori Co., Ltd.	Industrials	2.2%	-
Sumitomo Corp.	Industrials	2.2%	-
Mizuho Financial Group, Inc	Financials	2.1%	2.0%
Nisshibo Holdings Inc	Industrials	2.1%	-
Source: Amova Asset Management. Data as of 31 July 2026.

This combination of large-, mid- and smaller-cap exposure has translated into a strong track record. Amova Japan Equity SGD has outperformed both its TOPIX benchmark and its peer group across every major measurement period, from year-to-date to five years (Figure 6).

Its diversified and unconstrained approach — spanning growth and value as well as large- and mid-cap opportunities — has also contributed to resilience during market downturns. Over the rolling five-year period, the fund recorded a maximum drawdown of -26.7%, better than -28.4% for TOPIX and -27.6% for the peer-group average.

For investors looking to participate in Japan’s structural transformation without restricting their exposure to the country’s largest companies, we believe Amova Japan Equity offers a compelling approach.

Figure 6: The fund has consistently outperformed over the 5-year window

FSM Global Recommended Funds List: A curated guide to investment opportunities

If you are feeling overwhelmed by the wide range of choices or simply do not have the time to evaluate every fund on our platform, the FSM Global Recommended Funds List is here to help. Click here to view the full report.

In addition to the funds highlighted above, we have made changes to several other funds on the list, providing more detailed analyses for some of them. These updates are covered in separate articles, so be sure to check them out (Table 5)!

We are committed to guiding you on your investment journey, helping you invest globally with confidence and positioning your portfolio for long-term profitability.

Table 5: Other articles about the 2026/27 Recommended Funds

Category	Recommended Funds	Articles
US Equity	PineBridge US Large Cap Research Enhanced A USD	Fund spotlight: PineBridge’s lifecycle-informed, factor-based approach to US equities
Japan Small Cap Equity	BNP Paribas Japan Small Cap Classic Cap SGD	Fund Spotlight: Unlocking Japan's overlooked small-cap opportunities

Declaration:

For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold a NIL position in the abovementioned securities.