Up nearly 17% in 2025 — How MAPS is positioning for an even stronger 2026

• In 2025, our MAPS Growth portfolios delivered returns ranging from 6.0% to 16.9%, while our Income portfolios saw returns of between 6.4% and 16.4%.

• Key contributors to last year’s portfolio return include underweighting the US, overweighting the digital economy and Japan, and increasing our exposure to global bonds. 

• In equities, we remain overweight Japan and the digital economy, underweight the US, and maintain a neutral stance across other markets.

• Our fixed income positioning remains overweight short-duration and global bonds, with a stronger emphasis on global bonds at this point in time. 

2025 MAPS performance wrap

2025 was a year full of twists and turns, with markets swinging sharply on tariff threats, central bank moves, and global events. Volatility tested even the most seasoned investors, yet it also created opportunities for those ready to act. Through disciplined positioning and active management, our MAPS portfolios navigated the turbulence and delivered meaningful returns for our investors.

Building on a strong 2024, the Growth portfolios delivered returns of between 6.0% and 16.9% in 2025 (Figure 1). Income portfolios also posted solid results, with returns ranging between 6.4% and 16.4% across the same period. Notably, the balanced, moderately aggressive, and aggressive portfolios have reached new all-time highs, highlighting the effectiveness of our investment strategy. 

Figure 1: Performance of MAPS Growth portfolios for 2025

Across the five risk profiles, the more aggressive portfolios outperformed their conservative counterparts, supported by the stronger performance of equities—particularly emerging markets—relative to fixed income in 2025.

Where our decisions delivered results  

Let’s begin by looking at where our positioning added value in 2025.

Digital economy positioning was a key contributor to performance. As you know, the digital economy remains a core allocation within our portfolios. In October, we strengthened our conviction by increasing exposure from neutral to overweight, even as we maintained an underweight stance on the broader US market. 

Our confidence is grounded in the long-term growth potential of tech-driven businesses, supported by structural trends such as accelerating AI adoption and the continued digitalisation of the global economy. This selective approach enabled us to participate in high-growth opportunities while managing overall market risk. 

Within the digital economy sleeve, the VanEck Semiconductor ETF delivered returns of more than 40%, lifting overall performance for the segment despite the other two funds underperforming. On an aggregate basis, the digital economy allocation generated returns of more than 23%.

Diversification across regions was another important driver of results. During the year, we reduced exposure to the US and increased allocations to other regions, including Europe and emerging markets. Recognising the headwinds facing US equities, we moved to an underweight position early in the year and redeployed capital into areas where valuations and opportunities appeared more compelling. 

This proved beneficial as our fund selections outperformed. In particular, the Dimensional European Value Fund delivered a strong return of 42.4%, making it the best-performing fund in the portfolio in 2025. Within emerging markets, the Dimensional Emerging Markets Large Cap Core Equity Fund also contributed positively with a return of 24.1%.

Japanese equities were another positive contributor to portfolio performance. We maintained an overweight position for most of the year, trimming exposure in September to lock in gains while retaining our overall overweight stance. This positioning enabled us to participate in market strength, with the Eastspring Investments Japan Dynamic Fund delivering a solid return of 21.1%.

Extending duration within the fixed income allocation was another positive contributor to performance. By increasing exposure to global bonds relative to shorter-duration instruments, our portfolio benefited from falling yields as well as more attractive starting income levels. This positioning supported returns, with the PIMCO Income Fund delivering a solid 10.0% for the year and enhancing overall portfolio resilience. 

Figure 2: Key portfolio adjustments made in 2025

Source: iFAST Compilations

Setting the course for 2026

Positioning our portfolios for 2026 starts with staying invested in durable, long-term growth themes while maintaining discipline on valuation and risk. A key pillar is our continued conviction in the digital economy—where we believe structural demand drivers remain intact even after the sector’s strong run. 

We remain constructive on the digital economy because earnings momentum continues to do much of the heavy lifting for valuations, supported by faster AI adoption and broad-based technology spending. Within this theme, we like semiconductors, which sit at the heart of AI infrastructure buildouts and the ongoing digitalisation of the global economy. In our view, the industry’s high barriers to entry and concentrated leadership mean the strongest players are well positioned to capture a disproportionate share of long-term value creation.

Related article: MAPS Portfolio Note: Reiterating our long-term conviction in the digital economy

At the same time, Japanese equities remain an attractive opportunity, supported by a reflationary backdrop and improving corporate behaviour. Rising wages and stronger consumer spending are bolstering the economy, while ongoing reforms in governance, capital allocation, and shareholder returns enhance the market’s long-term appeal. These structural changes reinforce the case for maintaining an overweight position in Japan. Beyond the earnings tailwind, a potential rebound in the Japanese yen could add an additional layer of return for Singapore-based investors. 

2025 was a strong year for MAPS, underscoring the value of staying disciplined, careful fund selection, and remaining flexible when markets shift. Across all risk profiles, our portfolios delivered solid returns, led by our highest-conviction positions in the digital economy and emerging markets, which were standout performers.

As we head into 2026, we remain confident that this strategic positioning keeps your portfolio well placed to capture future opportunities, while continuing to focus on prudent risk management and long-term wealth creation.

Table 1: Equity intra asset allocation 

Table 2: Fixed income intra asset allocation

If you’re new to investing or simply don’t have the time or expertise to monitor the markets, MAPS could be the right solution for you. Start now with a lump sum investment from as little as SGD 500, or a Regular Savings Plan with monthly contributions starting at just SGD 100.

Declaration:

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

This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report – including all investment theses, ratings, price targets and conclusions – has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.