Woollacott Wealth Management - Independent Financial Advisers

22/05/2026

Great day out of the office at The BIG Sheep Family Attraction ! 🌞🐑🏁

27/04/2026

𝐖𝐡𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐢𝐧 𝐚𝐧 𝐈𝐒𝐀 𝐞𝐚𝐫𝐥𝐲 𝐢𝐬 𝐫𝐞𝐰𝐚𝐫𝐝𝐢𝐧𝐠 𝐢𝐧 𝐦𝐨𝐫𝐞 𝐰𝐚𝐲𝐬 𝐭𝐡𝐚𝐧 𝐨𝐧𝐞.

◾Investing at the start of the tax year can significantly boost long term ISA returns.
◾Early ISA investors could be around £25,000 better off than those who wait.
◾Higher dividend tax rates make using ISA tax wrappers more important than ever.

The new tax year is upon us, which means putting an investment plan into action. Putting it off until another day is a lost opportunity to make money. It’s not just about being organised with life admin, it’s also about giving an ISA more time to work its magic.

Research by AJ Bell found that someone who had put £5,000 into an ISA at the start of every tax year since 1999, and invested in a typical global equity fund, would now be £25,000 better off than someone who didn’t invest until the last day of the tax year.

Making the most of an ISA also brings tax advantages compared to leaving money in a general investment account, which is particularly important now that dividend tax rates have gone up. Putting money into ISA locks in generous tax benefits, so the investor pays nothing to the taxman on future capital gains or income for investments inside the wrapper.

AJ Bell ran scenarios that compared investing in a typical global fund every year since ISAs began in 1999.📋📊

An investor putting in £5,000 into their ISA on the first day of each tax year (6th April) and investing in a typical global fund, up until the end of the most recent tax year (5 April 2026), would have paid in £135,000 and is now sitting on a pot worth £462,028. 📈

But for an investor putting in £5,000 a year into their ISA - but leaving it until the last day of each tax year (5th April). The difference in returns is striking. Even though both investors have contributed the same £135,000 into their ISAs, the pot of the investor leaving it until the end of the tax-year is worth £437,035 – an astonishing £24,993 less. 📉

Early-birds benefit from having extra time in the market. Markets go up and down, but they generally rise more than they fall. Since 1999, the typical global fund has returned on average 8% from the beginning to the end of each tax year and has made a positive return in 17 out of 27 tax years. So around two-thirds of the time you would have been better off investing at the start of the tax year, rather than waiting until the end.

Source: AJ Bell, FE Analytics, total return of IA Global sector average in GBP to 5 April 2026.

𝘛𝘩𝘦 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘰𝘧 𝘺𝘰𝘶𝘳 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴 𝘪𝘴 𝘴𝘶𝘣𝘫𝘦𝘤𝘵 𝘵𝘰 𝘳𝘪𝘴𝘬(𝘴). 𝘐𝘵𝘴 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘮𝘢𝘺 𝘧𝘭𝘶𝘤𝘵𝘶𝘢𝘵𝘦 𝘣𝘢𝘴𝘦𝘥 𝘰𝘯 𝘮𝘰𝘷𝘦𝘮𝘦𝘯𝘵𝘴 𝘪𝘯 𝘵𝘩𝘦 𝘮𝘢𝘳𝘬𝘦𝘵 𝘢𝘯𝘥 𝘦𝘤𝘰𝘯𝘰𝘮𝘪𝘤 𝘤𝘰𝘯𝘥𝘪𝘵𝘪𝘰𝘯(𝘴). 𝘊𝘢𝘱𝘪𝘵𝘢𝘭 𝘢𝘵 𝘳𝘪𝘴𝘬. 𝘊𝘶𝘳𝘳𝘦𝘯𝘤𝘺 𝘮𝘰𝘷𝘦𝘮𝘦𝘯𝘵𝘴 𝘮𝘢𝘺 𝘢𝘭𝘴𝘰 𝘢𝘧𝘧𝘦𝘤𝘵 𝘵𝘩𝘦 𝘷𝘢𝘭𝘶𝘦 𝘰𝘧 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴. 𝘠𝘰𝘶 𝘮𝘢𝘺 𝘨𝘦𝘵 𝘣𝘢𝘤𝘬 𝘭𝘦𝘴𝘴 𝘵𝘩𝘢𝘯 𝘺𝘰𝘶 𝘰𝘳𝘪𝘨𝘪𝘯𝘢𝘭𝘭𝘺 𝘪𝘯𝘷𝘦𝘴𝘵𝘦𝘥. 𝘗𝘢𝘴𝘵 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘪𝘴 𝘯𝘰𝘵 𝘢 𝘳𝘦𝘭𝘪𝘢𝘣𝘭𝘦 𝘪𝘯𝘥𝘪𝘤𝘢𝘵𝘰𝘳 𝘰𝘧 𝘵𝘩𝘦 𝘧𝘶𝘵𝘶𝘳𝘦 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦.

17/04/2026

𝐐𝐮𝐚𝐫𝐭𝐞𝐫 𝟏 𝟐𝟎𝟐𝟔 𝐌𝐚𝐫𝐤𝐞𝐭 𝐔𝐩𝐝𝐚𝐭𝐞 📰

◾ US / Iran conflict drove oil prices higher, unsettling markets and shifting concern to inflation and growth risk.
◾ Bonds sold off sharply, as policy was expected to turn hawkish, while equity returns varied by region – with energy exposure providing support in the UK.
◾ High uncertainty reinforces need for diversification, with oil prices and political decisions central to the outlook.

March was dominated by the outbreak of conflict in Iran, which caused significant market upheaval and brought an abrupt end to what had been a broadly positive start to the year. Rising geopolitical risk had already been a defining feature of the early months of 2026 – first with the US intervention in Venezuela, and then with President Trump's posturing towards Greenland – but the escalation in Iran swiftly eclipsed both to command global attention.

𝐆𝐥𝐨𝐛𝐚𝐥 𝐄𝐪𝐮𝐢𝐭𝐢𝐞𝐬 📊

Equity markets have been volatile throughout the quarter, responding to an unpredictable flow of news regarding the trajectory and potential escalation of the conflict. Whilst most markets have felt its effects, first-quarter returns have also been shaped by how individual markets were positioned heading into the crisis.

In the US, a softer start to the year somewhat obscures what has been a degree of relative resilience since the conflict began. Japanese equities delivered strong gains after a decisive election result provided a clear mandate for the continuation of economic reform. Within emerging markets, South Korea has been the standout performer, benefiting from growing appreciation of its role within the AI supply chain. Closer to home, UK equities have outperformed, supported by the market's heavyweight exposure to the energy sector, with the major oil companies buoyed by rising crude prices.

𝐁𝐨𝐧𝐝𝐬 📉

Bond markets have faced a challenging reversal in 2026. Expectations of inflation returning to 2% targets have required meaningful upward revision in light of sharply rising oil prices, and central banks have responded with a notably hawkish tone – moving swiftly to convince markets of their willingness to raise interest rates decisively. This has prompted a broad repricing across fixed income. Whilst the most pronounced volatility and yield rises have been concentrated at the shorter end of the yield curve, it is longer-dated bonds that have delivered the weakest total returns. The UK bond market has been the hardest hit, owing in part to the country's structural reliance on energy imports.

𝐂𝐨𝐦𝐦𝐨𝐝𝐢𝐭𝐢𝐞𝐬 📈

Commodities delivered substantial returns in the quarter with the S&P Commodities Index up 40%. The energy component soared amid disruption to Middle East production and shipping. The conflict effectively closed the Strait of Hormuz, through which flows 20% of global oil supply as well as a significant proportion of liquified natural gas (LNG) and other commodities such as fertilisers. Saudi Arabia was able to divert some oil supply via its East-West pipeline. There was some damage to energy infrastructure, including to Qatar’s Ras Laffan LNG facility.

Elsewhere, the agriculture, livestock and industrial metals components registered smaller positive returns. Precious metals also registered a positive return for the quarter but saw sharp declines in March. Those falls in March may have partly been due to profit taking after a strong run previously for both metals. Additionally, expectations of higher interest rates weighed on the attraction of gold and silver which offer no yield.

𝐎𝐮𝐭𝐥𝐨𝐨𝐤 👀

As with any event that dominates market attention, the range of potential outcomes is wide and largely contingent on political decisions that are, by their nature, difficult to forecast. Scenarios span from a relatively swift de-escalation – which would provide immediate relief to risk assets and take pressure off energy prices – through to a prolonged conflict that continues to weigh on growth expectations and keeps central banks in a difficult position. The latter would present the more challenging environment to navigate: one in which policymakers face the unenviable task of responding to inflation driven by factors largely outside their influence, whilst simultaneously managing the risk of tipping economies into recession.

In the near term, oil prices are likely to remain the key variable for both inflation and markets. Beyond energy, however, the conflict has reinforced a broader reassessment of supply chain vulnerabilities, defence spending trajectories, and energy security – themes that are likely to shape investment narratives well beyond the immediate volatility.

For our portfolios, this environment underscores the importance of genuine diversification – not merely across geographies, but across asset classes, duration, and the type of risk being taken.

Source: AJ Bell and Schroders

📧 [email protected]
🌐 www.woollacott-wm.co.uk

31/03/2026

𝐏𝐞𝐧𝐬𝐢𝐨𝐧𝐬 for the 𝐒𝐞𝐥𝐟-𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐝 are important as they help bridge the gap left by not having an employer-workplace pension plan.
Pensions have the potential to offer tax relief, compound growth, flexibility and financial security for the Self-Employed.

📊 Research from Which has found that only 7 in 10 of those who were mostly self-employed had at least one private pension, compared with 9 in 10 of those who were employed for most of their working life.

When you’re self-employed, you don’t have the advantage of an employer pension scheme — so preparing for retirement becomes your responsibility. While the State Pension may provide some support, it’s rarely enough on its own to fund the lifestyle many people hope for in later life.

⏳ 𝐖𝐡𝐲 𝐬𝐭𝐚𝐫𝐭 𝐬𝐚𝐯𝐢𝐧𝐠 𝐞𝐚𝐫𝐥𝐲?

The earlier you begin contributing to a pension, the more time your money has to grow. Even modest monthly payments can build into a meaningful retirement fund over the years — helping you enjoy financial security rather than worry about money later on. For example, saving £150 a month with 4% growth could produce a significantly larger pension pot if you begin at age 30 rather than 45. Time in the market really matters.

𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐬𝐭𝐚𝐫𝐭𝐢𝐧𝐠 𝐚 𝐩𝐞𝐧𝐬𝐢𝐨𝐧 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐬𝐞𝐥𝐟-𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐝;

✅ 𝟏. 𝐓𝐚𝐱 𝐑𝐞𝐥𝐢𝐞𝐟 𝐨𝐧 𝐂𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧𝐬
• You get 20% tax relief at source automatically (basic rate).
• Higher and additional rate taxpayers can claim extra relief (40% or 45%) through self-assessment.

✅ 𝟐. 𝐓𝐚𝐱-𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭 𝐆𝐫𝐨𝐰𝐭𝐡
• Growth within the pension (interest, dividends, capital gains) is tax-deferred until withdrawal.
• This allows your savings to compound more effectively compared to a regular investment account.

✅ 𝟑. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐢𝐧 𝐑𝐞𝐭𝐢𝐫𝐞𝐦𝐞𝐧𝐭
• Unlike employees who may receive workplace pensions, the self-employed must create their own safety net.
• Building a pension ensures you won’t rely solely on state pensions or unpredictable business income in old age.
• Provides a predictable income stream when you stop working.

✅ 𝟒. 𝐂𝐨𝐦𝐩𝐨𝐮𝐧𝐝 𝐆𝐫𝐨𝐰𝐭𝐡
• Contributions invested over decades could benefit from Compound Growth, potentially growing much more than savings in a standard bank account.
• Starting earlier allows self-employed individuals to make smaller contributions that could potentially grow substantially over time.

✅ 𝟓. 𝐅𝐥𝐞𝐱𝐢𝐛𝐥𝐞 𝐂𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧𝐬
Self-employed income can fluctuate. Pension schemes let you:
• Pay in lump sums when cash flow allows.
• Pause or adjust contributions during leaner months.

✅ 𝟔. 𝐑𝐞𝐭𝐢𝐫𝐞𝐦𝐞𝐧𝐭 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲
• State Pension alone (currently £241.30/week from April 2026 for those with full NI record) often isn’t enough.
• Private pensions give self-employed workers additional income security.
• At retirement age (currently 55, rising to 57 in 2028), you can usually take 25% tax-free lump sum and flexible income from the rest or an annuity providing a guaranteed income for life.

✅ 𝟕. 𝐃𝐢𝐬𝐜𝐢𝐩𝐥𝐢𝐧𝐞 𝐢𝐧 𝐒𝐚𝐯𝐢𝐧𝐠
• Pensions "lock in" retirement savings, preventing the temptation to dip into funds for short-term needs.
• Encourages consistent long-term planning.
• Pensions are ring-fenced from creditors (in most cases), which can be crucial if your business faces financial trouble.

Woollacott Wealth Management can help you understand your options, and build a retirement plan that suits both your lifestyle and your business goals.

📧 𝐆𝐞𝐭 𝐢𝐧 𝐭𝐨𝐮𝐜𝐡
Email - [email protected]
Website - www.woollacott-wm.co.uk

19/03/2026

Our 6 Stage Advice Process - this structured approach helps you achieve your financial goals.

11/03/2026

𝐇𝐨𝐰 𝐦𝐚𝐧𝐲 𝐭𝐞𝐞𝐧𝐬 𝐤𝐞𝐞𝐩 𝐭𝐡𝐞𝐢𝐫 𝐉𝐮𝐧𝐢𝐨𝐫 𝐈𝐒𝐀 𝐚𝐭 𝟏𝟖?

Parents considering investing for their children may be encouraged by new data from AJ Bell, which found that kids aren’t plundering their ISA savings as soon as they get their hands on the money.

One of parents’ biggest worries when opening a 𝐉𝐮𝐧𝐢𝐨𝐫 𝐈𝐒𝐀 for their child is that when their child turns 18, they get control of the account and can do what they want with it – including spending it all.

It’s far more common for young investors to continue to contribute to their ISA than to blow their Junior ISA savings.

𝐖𝐡𝐚𝐭 𝐭𝐡𝐞 𝐝𝐚𝐭𝐚 𝐫𝐞𝐯𝐞𝐚𝐥𝐬:

• Only around one in 20 young savers empty their Junior ISAs when they gain full control over the fund at age 18.

• One in ten take out more than half of the money within the first year, while one in five make a withdrawal of some amount during this period.

• But many contribute more to their savings, with a third of young people with Junior ISAs doing this when their account matures into an adult ISA, according to three years of customer data analysed by AJ Bell.

𝐇𝐨𝐰 𝐦𝐮𝐜𝐡 𝐜𝐨𝐮𝐥𝐝 𝐲𝐨𝐮 𝐦𝐚𝐤𝐞?

You can invest up to £9,000 a year in a Junior ISA for a child, who can take control when they are 16 but cannot make a withdrawal until they are 18.

Junior ISAs are one of the best tools for parents hoping to set their children up for later life through long-term investing.

Most families who contribute into a Junior ISA do so when a child is aged between five and 14, according to freedom of information data for 2022/23 obtained by AJ Bell.

Previous research has shown some parents saving into Junior ISAs keep their children in the dark about their windfall until they are 18, fearing they are not financially mature enough to know, or will spend all the money immediately they get access to it.

However, others engage children in decisions about their ISA and use it as a chance to teach them about money in general or about how to invest.

• If you put away £500 a year for a child from birth they could turn 18 with a portfolio worth almost £14,770, based on a 5 per cent annual investment return including charges.

• If you maxed out the £9,000 allowance until a child was 18 they could end up with £265,850, using the same calculation.

• A one-off gift of £500 could turn into £1,200, or £9,000 paid in once could reach £21,660 after 18 years.

www.woollacott-wm.co.uk

Source: AJBell – https://www.ajbell.co.uk/news/how-many-teens-keep-their-junior-isa-18

05/03/2026

It’s been great to see so many clients already this year 👍

So far this year, I’ve had the pleasure of helping local clients with:
✅ Making the most of their 𝐈𝐒𝐀 𝐚𝐥𝐥𝐨𝐰𝐚𝐧𝐜𝐞𝐬 through 𝐈𝐒𝐀 𝐓𝐨𝐩-𝐔𝐩𝐬 ahead of the 𝟓 𝐀𝐩𝐫𝐢𝐥 𝐝𝐞𝐚𝐝𝐥𝐢𝐧𝐞.
✅ Taking over and managing existing 𝐏𝐞𝐧𝐬𝐢𝐨𝐧𝐬.
✅ 𝐂𝐨𝐧𝐬𝐨𝐥𝐢𝐝𝐚𝐭𝐢𝐧𝐠 𝐏𝐞𝐧𝐬𝐢𝐨𝐧𝐬 to make things simpler and easier to manage.
✅ Completing 𝐀𝐧𝐧𝐮𝐚𝐥 𝐑𝐞𝐯𝐢𝐞𝐰𝐬 for existing clients.

If you’ve been putting off reviewing your finances, now could be a great time to start the conversation.

Remember, If your 𝐈𝐒𝐀 𝐚𝐥𝐥𝐨𝐰𝐚𝐧𝐜𝐞 hasn’t been fully utilised yet, the clock is ticking. ⏰

If you haven’t reviewed yours yet, there’s still time before the 𝟓 𝐀𝐩𝐫𝐢𝐥 𝐝𝐞𝐚𝐝𝐥𝐢𝐧𝐞. 📅

24/02/2026

Woollacott Wealth Management can help with 𝐏𝐞𝐧𝐬𝐢𝐨𝐧 𝐂𝐨𝐧𝐬𝐨𝐥𝐢𝐝𝐚𝐭𝐢𝐨𝐧:

Pension Consolidation means combining multiple pension pots into one. It can offer several advantages - especially if you've had multiple jobs with different pension providers.

Here are the main benefits of consolidating your pensions:

✅ 𝟏. 𝐄𝐚𝐬𝐢𝐞𝐫 𝐭𝐨 𝐌𝐚𝐧𝐚𝐠𝐞
• One pot, one provider – easier to track, understand, and manage your pension.
• Fewer statements, passwords, and admin.

✅ 𝟐. 𝐋𝐨𝐰𝐞𝐫 𝐅𝐞𝐞𝐬
• Some old or legacy pensions have high charges.
• Consolidating into a modern pension (like a SIPP or online provider) may reduce ongoing fees, which can significantly boost long-term growth.

🔎 Example: Reducing charges from 1.5% to 0.5% could add tens of thousands of pounds to your pension over decades.

✅ 𝟑. 𝐁𝐞𝐭𝐭𝐞𝐫 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐂𝐡𝐨𝐢𝐜𝐞𝐬
• Older pensions may have limited or outdated fund choices.
• Newer pensions often offer wider investment options, including ethical funds, ETFs, and Individual Shares.

✅ 𝟒. 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞
• A better-performing pension fund (lower fees + better investment options) could lead to higher growth over time.
When Pension Consolidation Makes Sense
• You have multiple small pots from previous jobs.
• You're not getting special benefits (like guaranteed annuity rates).
• You're paying high fees or have poor investment options.
• You want simpler management and better visibility.
Consolidating pensions can simplify retirement planning, but it's not always the best option.

Here are reasons not to consolidate your pensions:

❎𝟏. 𝐋𝐨𝐬𝐬 𝐨𝐟 𝐕𝐚𝐥𝐮𝐚𝐛𝐥𝐞 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬
Some older pensions may include:
- Guaranteed annuity rates (GARs) far higher than what you could get today.
- Protected tax-free cash above the standard 25%.
- Early retirement options without penalties.
- Inflation-linked increases or death benefits.
Consolidating could cause you to lose these benefits permanently.

❎𝟐. 𝐏𝐞𝐧𝐚𝐥𝐭𝐢𝐞𝐬 𝐟𝐨𝐫 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫𝐫𝐢𝐧𝐠
Some pension providers impose exit fees or penalties for transferring out, especially on older pensions.

❎𝟑. 𝐂𝐨𝐬𝐭 𝐨𝐟 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫𝐫𝐢𝐧𝐠
The cost of taken financial advice when transferring a pension could potentially wipe-out any benefits of transferring to a cheaper provider and therefore might result in a recommendation not to transfer.

📧[email protected]
🌐

An Independent Financial Advisory Service for your Pension, ISA and Investment Journey Located in the Heart of Devon.

02/02/2026

𝐅𝐓𝐒𝐄 𝐇𝐢𝐭𝐬 𝟏𝟎,𝟎𝟎𝟎📈

At the start of the New Year The FTSE 100 smashed through the psychologically important 10,000 points on the first day of trading in 2026. At the ripe age of 42, the blue-chip index which launched at 1,000 points has finally achieved ‘5-digit’ status.

After flirting with the 10,000 in the final days of 2025, the FTSE 100 made a convincing move through the key level.

It had only been 171 days since the FTSE 100 hit 9,000, so exceeding 10,000 at the start of 2026 makes it a record-breaking leap.

Previously, the fastest jump in blocks of 1,000 happened when the FTSE 100 went from 5,000 to 6,000, which took 229 days in the late 90s.

The UK has spent so long in the shadow of the US, but The FTSE 100 returned more than the S&P 500 for the first time in what seems like an eternity in 2025, with London’s leading index surging 21% compared to a 16% rise in the S&P 500.

Over a 5-year period, the FTSE 100 has added 54% while the S&P 500 has gained 82%. The FTSE 100 would have paid more dividends over this period, however.

13/01/2026

𝐐𝐮𝐚𝐫𝐭𝐞𝐫 𝟒 𝟐𝟎𝟐𝟓 𝐢𝐧 𝐒𝐮𝐦𝐦𝐚𝐫𝐲 📊📈

Global markets posted steady gains during the fourth quarter of 2025, with several equity indices finishing the year near record or multi-year highs and capping a strong period for risk assets overall. For the first time in several years, non-US equities significantly outperformed the US market for the full year. A number of factors drove that break from American market dominance, including a weaker US dollar, attractive valuations outside the US and a rotation by some investors away from US technology stocks. All these trends contributed to strong gains in Europe, Asia and emerging markets.

𝐆𝐥𝐨𝐛𝐚𝐥 𝐄𝐪𝐮𝐢𝐭𝐢𝐞𝐬

Over the fourth quarter of 2025, global equity markets delivered modest but steady gains. Despite headlines highlighting US markets reaching all-time highs, returns in sterling terms were comparatively muted over 2025 due to the weakness of the US dollar. In the fourth quarter, US market returns were supported by Alphabet’s rise to challenge Nvidia in AI chip design, while the latter remained steady. The healthcare sector performed well after leading companies reached drug pricing agreements with the US Government. UK and European equities were also buoyed by financials, with healthcare stocks performing strongly. The UK market additionally benefited from the materials sector, which rallied on the back of rising precious and industrial metal prices.

Emerging markets ex China continued their rally in the final quarter of 2025 as the AI theme and its supply chain attracted attention. Technology-heavy markets such as South Korea and Taiwan benefited, while Chinese equity markets and their AI leaders declined, reflecting their underlying reliance on consumer spending amid weaker economic data.

𝐅𝐢𝐱𝐞𝐝 𝐈𝐧𝐜𝐨𝐦𝐞

After inflation in the UK hovered at nearly double the 2% target during the summer months, it subsided to 3.2% by November. This enabled the Bank of England to implement a final rate cut in December, which supported gilts across the curve, as did the smooth passage of the UK Budget. A similar trend in inflation was observed in the US, following a gap in coverage due to the Government shutdown. US inflation eased to 2.7% in November, allowing the Fed to focus on the employment aspect of its mandate.

Corporate bonds enjoyed another positive quarter, ending 2025 on a strong note. Credit spread compression and higher starting yields helped them outperform government bonds this year. Consequently, those segments of the bond market carrying greater risk, such as high yield bonds, proved to be more attractive allocations in 2025.

𝐂𝐨𝐦𝐦𝐨𝐝𝐢𝐭𝐢𝐞𝐬

Precious metals were the clear standout performers across the commodities complex in 2025. Gold rose by more than 60% for the year, while silver posted gains exceeding 140%. Both metals are considered “safe-haven” assets and benefited from investors’ concerns about ongoing geopolitical uncertainty, a weaker US dollar, moderating but still elevated global inflation, and expectations of slower global growth. Silver’s price gains were also driven by a tight supply of the metal and its critical role in the production of solar energy technologies, electric vehicles, and AI-related infrastructure such as data centres.

Industrial metals also had strong performance. Copper climbed to record highs and closed out a landmark year, supported by persistent supply constraints, a softer US dollar, and rising demand linked to electrification, grid investment and data-centre expansion, particularly in China. Lithium likewise ended the year higher, reflecting continued growth in battery storage and electric vehicle demand.

In contrast, energy markets underperformed. Oil prices declined steadily through the year, with West Texas Intermediate crude ending 2025 at $57 per barrel. That represented a nearly 20% drop for the year, the sharpest annual decline in oil prices since 2020. The weakness reflected a combination of global oversupply, expanding production from both OPEC and non-OPEC producers, and softer demand growth amid slowing economic momentum.

Source: AJ Bell and Schroders