WealthGuard Smoothed Growth Fund – USD

Investment Objective

The fund aims to produce growth over the medium to long-term (5 to 10 years or more) while smoothing some of the ups and downs of short-term investment performance. The underlying fund spreads investment risk by investing in a range of different asset types, which currently includes European and international equities, property, fixed interest securities, index-linked securities and other specialist investments.

Investment Commentary

31 December 2025 Financial markets proved resilient despite slowing growth, supported by a pivot to monetary easing and ongoing enthusiasm for AI-related stocks. Global equities extended recent gains. The S&P 500 rose 2.7%, closing 2025 up nearly 18% (in US dollars), while the FTSE 100 gained 6.9% (in sterling), its strongest annual performance since 2009. Emerging markets outperformed, with the MSCI Emerging Markets Index advancing 4.8% (in US dollars) and delivering full-year gains above 30%, buoyed by a weaker dollar and improving sentiment across Asia and Latin America.

Bond markets strengthened as central banks shifted to rate cuts and investors priced in looser policy. UK government bonds led gains, with the 10-year yield edging lower. US Treasuries gained, taking their return for the year to 6.2% (in US dollars). European government bonds also rose, with the exception of German bunds. Corporate bonds also posted positive returns.

Commodities delivered contrasting moves. Precious metals soared, with gold and silver posting their strongest annual gains since 1979 as investors sought safe havens amid falling real yields. Oil prices continued to weaken, marking a third consecutive annual decline. The US dollar logged its worst year since 2017, sliding broadly against major peers, while the euro and sterling strengthened on policy easing and improved risk appetite.

Despite macro headwinds, sentiment ended the year constructive, anchored by expectations of continued policy support and a gradual normalisation of inflation.

*Expected Growth Rates (EGR)

Expected Growth Rates are set periodically taking into account current and expected market conditions. They indicate potential returns over the medium to long-term.

Help investors set realistic expectations for growth. Provides an outlook for returns, assisting in long-term investment planning.