Investors are grappling with global equity markets becoming increasingly correlated to the ongoing artificial intelligence buildout meanwhile long duration bond yields continue to rise.

Over the past six months, semiconductor stocks are accounting for a larger portion of global indices and have recently experienced both a parabolic rally and major correction.

As nervousness builds surrounding the vulnerability of equities to the AI trade and the inadequacy of long-duration bonds to cushion portfolios, FSA looked at which equity funds have weathered the storm over the past 6 months.

To do this, FSA looked at which global equity funds exhibited lowest downside capture (relative to the sector average) over the past six months, as well as top-ranked performance and low volatility, according to data from FE fundinfo.

Out of all the funds available for distribution in either Hong Kong or Singapore, only 28 delivered on all three criteria: top-ranked returns, low volatility and downside capture, listed below ranked by the lowest downside capture.

Fund	6m return (%)	6m volatility (%)	6m downside capture (%)
DWS Invest CROCI Sectors Plus	8.23	13.74	16.54
Uni-Global Defensive World Equities	11.7	13.53	20.54
iShares Ageing Population UCITS ETF	9.7	15.23	25.16
iShares Currency Hedged MSCI EAFE ETF	10.21	13.21	30.55
UBS Global Income (USD)	17.57	15.03	31.19
Neuberger Global Value	12.11	15.45	46.58
UBS (Lux) GlobQualDiviEqFd	16.88	17.51	49.05
Allspring (Lux) Worldwide Global Equity Enhanced Income	10.41	14.86	53.73
VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF	9.04	14.24	56.97
Swisscanto (LU)EF Systmtc Rspnsbl Slctn	11	16.62	57.59
iShares MSCI EAFE Value Index	12.92	16.74	60.22
Indosuez Estrategia Acciones tematicas	10.23	14.37	63.69
MFS Meridian Global Equity Income	9.51	13.43	64.08
VP Fund Solutions (Liechtenstein) AG VP Bank Risk Optimised Equity World	10.03	17.27	66.2
The SEI Global Equity	10.24	15.68	67.76
iShares MSCI Kokusai ETF	8.66	17.32	67.92
Thornburg Equity Income Builder	11.76	15.26	69.84
Invesco Global Enhanced Equity UCITS ETF	10.1	17.45	70.63
Fidelity Fidelity Global Quality Income UCITS ETF	8.41	15.65	72.56
Dimensional Global Core Equity	8.79	16.02	72.84
Dodge & Cox Global Stock	8.6	16.04	72.92
Pictet Quest AI-Driven Global Equities	8.76	16.99	74.04
Robeco QI Global Developed Enhanced Index Equities	8.78	17.58	77.03
Dimensional Global Core Equity III Fund	8.37	16.76	77.14
Xtrackers Stoxx Global Select Dividend 100 Swap UCITS ETF	12.18	15.89	79.85
DWS Invest CROCI World Value	9.64	16.26	80.09
Redwheel Global Intrinsic Value	11.56	17.36	81.13
Dimensional Global Core Equity UCITS ETF	8.41	16.61	81.42

A number of systematic and enhanced index funds stand out in the list as quantitative approaches seemed to shine during the volatility.

These include the systematic funds such as Dimensional Global Core Equity, and enhanced index strategies such as Invesco Global Enhanced Equity UCITS ETF and Robeco QI Global Developed Enhanced Index Equities.

A large number of income and dividend focused strategies also feature in the list, such as UBS Global Income, Thornburg Equity Income Builder and Fidelity Global Quality Income UCITS ETF.

The Uni-Global Defensive World Equities also stands out as a strategy with an explicit defensive approach to investing.

Finally, there were quite a few value strategies in the list as value stocks have typically exhibited less downside during market corrections.

Some notable value funds in the list include Neuberger Global Value, iShares MSCI EAFE Value Index and DWS Invest CROCI World Value.