How good are you at picking winners?
That’s one of the key questions which any investor should ask themselves before putting their hard-earned money into a particular asset, whether that’s equities, bonds, funds or other forms of investment.
Advances in technology have made it quicker and easier for people to invest directly into things like stocks and shares, but how should you choose where to place your money?
Going with gut instinct or picking up a stock tip from a passing acquaintance is probably not the long-term investment strategy that most people would adopt.
Likewise, researching investments on the internet or leaving it to AI can also be fraught with potential problems and could lead you to invest in products that you don’t understand, and that don’t meet your investment needs.
This is where a model portfolio service (MPS) can help.
A model portfolio is a pre-constructed collection of investment assets – such as equities, bonds, mutual funds and cash – designed to achieve specific financial goals, and to align to a specific risk level.
In many cases, model portfolios are constructed by teams of investment managers who use their knowledge, experience and research to decide the best way to allocate assets. Portfolio managers are then given discretionary permissions that allow them to rebalance the portfolios on a regular basis in order to maintain alignment to the target asset allocation and adjust positioning in response to changes in market conditions.
Portfolios can be built to achieve a range of different objectives, including long-term growth, capital preservation, income generation and/ or sustainability related goals. Furthermore, portfolios will generally be available at a range of different risk levels, ensuring investors across the risk spectrum have access to robust investment solutions.
At Fairstone, we run a model portfolio service (MPS) comprising a broad range of solutions, each designed to meet a different set of financial objectives.
For example, our Flagship Portfolios are well-diversified portfolios designed for steady long-term growth or income while our Responsible Portfolios are designed for investors who want to avoid some of the more controversial sectors, while focusing on companies that have better societal and environmental footprints.
Opting to invest in an MPS can offer a number of benefits, including:
1. Simplified decision making – instead of researching and selecting individual investments, investors and financial advisers can instead access the expertise of investment professionals by putting money into ready-made portfolios that align with pre-stated objectives.
2. Alignment to risk – model portfolios are generally built to span the risk spectrum, meaning investors can choose a solution that matches their appetite for risk and investment time horizon.
3. Diversification – model portfolios are built to spread risk across various asset classes and sectors, as well as different geographic regions. This helps to reduce exposure to any single market, ultimately reducing overall portfolio volatility and boosting the opportunity for growth.
4. Ongoing management – MPS solutions are built to be updated and rebalanced on a regular basis, giving investors the peace of mind that their holdings will always be aligned to market conditions and their agreed risk level.
5. Improved consistency – when markets are volatile, an MPS can help you plot a consistent investment course, keeping a focus on long-term outcomes rather than short-term fears.
6. Cost efficiency – by pooling assets, model portfolio managers are able to leverage scale to drive down the cost of underlying investments, allowing investors access high quality solutions at attractive prices.
An independent financial adviser will be able to talk you through Fairstone’s suite of model portfolios and provide informed advice on the best fit for your overall financial goals, taking into account factors such as your appetite for risk, your retirement plans, personal goals and overall circumstances.
Our financial advisers are also in regular contact with portfolio managers and have access to a wide range of collateral covering market movements and portfolio changes – all of which can help you stay engaged with your investments and aware of how your assets are being adjusted to adapt to shifting global markets.
A model portfolio can provide a cost-effective and efficient way to invest, matching your risk appetite with your financial goals.
Consulting a financial adviser can help you decide whether an MPS suits your needs and which one offers the best fit for you.
It is important to note that as with all investments, the value of money invested in a model portfolio can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. Always seek professional advice before making financial decisions.
When investments are mentioned, people often think that just means stocks, bonds or cash.
However, there are investments which fall outside these categories which can form part of a portfolio: alternative investments.
Here we take a look at what alternative investments are, how they can help with your investment planning and how getting the right advice can assist you on your alternative investment journey.
Alternative investments are financial assets outside of conventional stocks, bonds, mutual funds, exchange-traded funds and cash.
Examples of alternative investments include private equity or venture capital, hedge funds, art and antiques, commodities, and derivatives contracts. Real estate is also often classified as an alternative investment.
Depending on the individual investment and on individual circumstances, alternative investments have the potential to offer a degree of protection from market-driven volatility and some possible growth opportunities.
If used carefully, they can help to further diversify an investment portfolio, making it potentially less susceptible to sudden shocks.
For example, gold has been seen as something of a ‘safe haven’ for investors for many years, particularly during times of uncertainty.
While past performance is not a reliable indication of future performance, it is a fact that the price of gold has risen considerably over the past five years, from £1,420 an ounce in July 2020 to £2,421 an ounce in June 2025, as shown in this chart from gold.co.uk
Of course, other assets have also increased in value over the same time period, but gold has proved to be a resilient asset for many years, particularly during times of high inflation.
Infrastructure investments are currently rising in popularity and prominence with government spending in the UK and abroad on large-scale projects on the increase.
This can be in the form of direct investments in investment trusts who own infrastructure assets such as airports and ports or via tracker funds which focus on the infrastructure sector.
In the case of the Fairstone Nova model portfolio range, this includes investment in infrastructure owners as part of the diversified portfolios on offer.
Real estate is also a popular form of alternative investment, whether that is via direct stakes in property developments or via investments in real estate funds or real estate owners.
Risks associated with alternative investments follow a broadly similar pattern to risks with conventional investments: prices can go down as well as up, past performance is no indication of future performance and you may not get back the full amount you invested.
As with conventional investments, alternative investments offer varying levels of risk and reward.
In the case of investments in some physical assets – such as art or antiques – added to the risk of fluctuating asset prices are the risks of veracity (is the piece of art you have invested in genuine?) and liquidity (you will need to find a buyer for the asset you own in order to realise a return on your investment).
Alternative investments are not something for the beginner.
As with any form of investment, you should regard investments in alternatives as long-term and ensure they fit in with your overall attitude to risk and your financial circumstances.
Consulting a financial adviser will help you get your investment planning in line with your approach to risk and your overall financial goals. This will help you to see whether alternative investments could form a useful part of your portfolio and, if so, how best to incorporate them.
At Fairstone, our advice offering includes alternative investments in the context of managed investment funds, though we do not undertake transactions in alternative investments directly.
Alternative investments can help to create a diversified investment portfolio that is less susceptible to economic and stock market volatility.
A financial adviser can assist you in deciding whether such investments are right for you and your family.
This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. Always seek professional advice before making financial decisions.
ESG has become something of a buzzword in investment circles in recent years, but what is ESG investing, how does it work and could it be something for you to consider?
Here we break down the basics, give some examples of ESG investments and look at factors to take into account if you’re thinking about allocating some, or all, of your capital towards investments that are aligned with strong ESG principles.
Environmental, Social and Governance investing, or ESG investing, relates to a segment of the investment universe where fund managers carry out additional research to understand the environmental, social and governance risks associated with a given company.
‘Responsible’ companies are then seen as those who seek to reduce these risks, minimising their negative environmental and social footprints, and running their businesses in an accountable, open and transparent way.
Investments in companies or organisations such as these expanded swiftly through the early 2020s, reaching an estimated £22.05 trillion in 2022, according to the Global Sustainable Investment Alliance.
More recently, investment research specialist Morningstar has mapped out flows of money into and out of global sustainable funds as follows:
It is important to note early on that there are no universally recognised criteria which define precisely what is or isn’t an ESG investment.
Furthermore, the term ‘ESG’ is also frequently interchanged with terms such as ‘responsible’, ‘sustainable’ or ‘ethical’, making it challenging for the would-be ESG investor to know whether or not a solution really meets their needs.
Here in the UK, the FCA have tried to combat this with the introduction of the Sustainability Disclosure Requirements (SDR), which require UK domiciled funds to meet certain criteria before they can use terms such as ‘sustainable’ or ‘impact’ in their name.
Yet even with the regulations in place, it is still not simple for an investor to be sure that a given investment solution will meet their individual ESG needs – particularly if UK domiciled funds are combined with overseas funds and packaged in to ready-made-portfolio solutions, which do not come under the remit of the previously mentioned naming rules.
As a result, if you are considering ESG investments, it is always a good idea to speak to your financial adviser and look carefully into the detail of any investment solutions that your money is going into, to check that they align with your personal responsible investment needs.
While investors can buy stocks and shares of individual companies that follow strong ESG principles, the simplest route for would-be ESG investors to take is to invest via a ready-made portfolio solution – or MPS – that aligns to your risk profile.
While these portfolios do not need to align with the FCA’s SDR naming rules, they do have to meet a set of stringent anti-greenwashing rules, which means they cannot claim to do anything that cannot be substantiated.
If an MPS claims to exclude producers of tobacco products, these exclusions have to be in place, with data to back up the claim. Likewise, if an MPS claims to invest in clean energy solutions, the data has to be there to verifying that it does, in fact, invest in clean energy solutions.
At Fairstone, we operate a suite of what we call Responsible portfolios.
These are designed for investors who wish to avoid investing in certain areas, while focusing on companies with a positive societal and environmental footprint.
Here’s how our Responsible portfolios line up:
This is an active global multi-asset portfolio range aligned with Fairstone’s responsible investment framework, that combines negative screening (filtering out companies that sit within some of the more controversial sectors), carbon reductions, and positive change.
Our responsible investment framework is supported by two of the leading authorities in ESG investment research – Morningstar and MSCI – allowing us to validate our responsible investment claims and ensure the third-party funds we buy into remain aligned with our process.
The portfolio range uses macroeconomic insights from fund manager JP Morgan to drive long term asset allocation, with shorter term, tactical adjustments made by the Fairstone Asset Allocation Committee. This ensures the portfolios are always positioned in an appropriate way, given the macroeconomic backdrop, while also maintaining their responsible investment objectives.
This portfolio range operates under the same responsible investment framework as the Responsible Active range and follows the same active asset allocation process.
However, where the Responsible Active range uses actively managed third-party funds, the Responsible Passive range invests only in passive third-party funds, which are aimed at tracking specific market indices rather than trying to outperform them.
Both the Responsible Active and Responsible Passive portfolio ranges offer models designed to suit a variety of risk profiles, from lower risk to higher risk.
There has been a lot of commentary, particularly in recent times, about whether it is possible to make a profit while staying true to your responsible investment principles.
Some observers claim that, with opposition to the pursuit of Net Zero hardening in some parts of the world, investments in companies which are focused on cutting carbon emissions could underperform in the future. Likewise, there are risks associated with reducing your investment universe through the implementation of strict, sector level exclusions.
However, others say that companies which are well managed, transparent and consider opportunities and risks around ESG issues carefully are more likely to thrive and could outperform rivals in the future.
As with the definition of what is and what isn’t an ESG investment, there is no clear answer on whether doing good for people and the planet will be better for your bank balance in the long run.
It is up to you as an individual investor as to how you would wish to balance your financial goals with your responsible investment goals.
While you might be filled with passion for doing good with your investments, it is very important to make sure you are doing the right thing for yourself and your family too.
A financial adviser will help you to put potential ESG investments into the context of your overall goals and ensure that where you are thinking of putting your money tallies with your approach to risk and your financial situation.
ESG investing offers the potential to create financial returns and positive environmental and social outcomes, but do your research to ensure that where you are putting your money matches your aspirations.
Taking expert financial advice can help with this process and enable you to understand the potential risks and rewards.
It is important to note that with these portfolios, as with all investments, the value of investments and the income from them can go down as well as up and that you may get back less than the amount you invested.
This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. Always seek professional advice before making financial decisions.
In times of market decline, it’s easy to fall into the trap of reacting impulsively. However, it’s important to remember that successful investing is about playing the long game not making knee-jerk reactions to short-term market fluctuations. By staying committed to a long-term strategy, you’re more likely to achieve your financial goals, rather than chasing quick profits that are often elusive.
The secret to long-term success lies in sticking to a well-thought-out strategy, which is far more effective than chasing short-term profits that often lead to disappointment. Let’s explore why maintaining a long-term approach is crucial for achieving your financial objectives.
When markets fall, it’s natural to feel the urge to “do something”, whether it’s selling off assets or trying to time the market. The idea of quick profits and instant gratification can be very appealing, especially when you see a sudden dip in prices. Some investors may attempt to buy and sell based on predictions of short-term market movements, believing they can beat the market by making the right moves at the right times.
However, market timing, which involves buying and selling based on predictions of market direction, is often a strategy fraught with risk. Numerous studies show that this approach tends to yield suboptimal results in the long run, as accurately predicting the market is nearly impossible.
The core of market timing revolves around predicting price movements and making decisions based on those predictions, whether to buy when you think prices will rise or sell when you anticipate a decline. The goal is to capitalise on these forecasts to generate short-term profits. However, the challenge lies in the unpredictable nature of the market.
Markets are influenced by a wide range of factors, from economic indicators to geopolitical events, making it incredibly difficult to predict short-term movements. For those trying to time the market, two correct decisions are needed: when to exit and when to re-enter. Getting either of these wrong can lead to significant financial losses. And remember, even the most experienced investors can’t consistently predict market movements.
For example, sheltering in cash can be tempting after economic and geopolitical shocks but history suggests this is rarely a good idea. When looking at a select number of shocks since 1990, a 60/40 portfolio of stocks and bonds has outperformed cash 80% of the time over a 1-year horizon, and always over a three-year timeframe:
Instead of trying to time the market, focus on strategies that embrace long-term growth and consistent investing. One of the most effective methods is pound cost averaging, which involves investing a fixed amount regularly, regardless of market conditions. This strategy smooths out the volatility by investing consistently over time, rather than attempting to catch the “perfect” moment.
For example, instead of investing a lump sum all at once, you might decide to invest a fixed amount each month, say £1,000. This reduces the risk of buying during an inflated market and allows you to benefit from purchasing more shares when prices are lower. It’s an approach that minimises the emotional side of investing especially during market downturns.
While it’s tempting to react to market dips, the key to long-term investing success is consistency. Pound cost averaging enables you to weather short-term market fluctuations by focusing on regular contributions over time, instead of worrying about when to buy or sell. Over the long term, this approach allows you to accumulate more assets at lower prices during market downturns.
And while this method doesn’t guarantee a profit, it does tend to mitigate the risk of emotional decisions and knee-jerk reactions. By focusing on time in the market, you let the power of compound growth and consistent investment work for you.
In conclusion, when the market dips, remember that your best option is often to stay steady and let your investments grow over time. Stick with your plan, resist the urge to act impulsively, and enjoy the benefits of consistent, patient investing.
If you’re looking to revisit your financial plan or explore new investment opportunities, we’re here to guide you. Our team can offer personalised advice and insights tailored to your unique circumstances, helping you navigate uncertainty with confidence.
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
If you want to build a solid, robust investment portfolio that can withstand market volatility and deliver long-term growth, diversification is a must in building a strong, resilient investment portfolio. Diversification is a key strategy to protect your investments from market volatility and set yourself up for long-term growth.
The secret to achieving lasting success lies in balancing risk and opportunity through a well-diversified approach. Let’s dive into why diversification is essential for your financial future and how you can implement it effectively in your investment strategy.
Diversification involves spreading your investments across various asset classes, industries, and geographical regions. This approach helps reduce risk by ensuring that no single downturn will severely impact your entire portfolio. The core idea is simple: don’t put all your eggs in one basket.
For example, if you only invest in one stock or asset class, like equities, any negative market movement could have a major impact on your wealth. However, by diversifying into multiple asset type such as stocks, bonds, real estate, and commodities, you create a more resilient portfolio. Different assets often perform differently during market changes, ensuring your overall financial health is better protected.
In today’s volatile investment climate, diversification acts as a buffer against unpredictable market shifts. Economic events, government policy changes, or fluctuations in interest rates can all cause specific sectors or asset classes to perform poorly. But a diversified portfolio spreads these risks across various areas.
For instance, when stock markets experience downturns, bonds can provide a stabilising effect. Likewise, investing in international markets or alternative assets like gold can provide a cushion when other parts of your portfolio are underperforming. By spreading your investments, you can weather storms more effectively and minimise the chance of significant financial loss.
While risk management is one of the primary advantages, diversification also plays a pivotal role in maximising long-term returns. By gaining exposure to different asset classes, you increase the likelihood of capturing growth opportunities across sectors.
Consider the following: equities might offer high growth potential but come with more risk, while bonds are less volatile and provide stability. A balanced mix of both allows you to manage risk while still positioning yourself for potential growth. Additionally, as different industries thrive at different times, your diversified portfolio enables you to capitalise on opportunities across the economy. A diversified approach ensures you’re positioned to benefit from multiple sectors’ successes.
The proverbial ‘patchwork quilt’ chart below neatly illustrates the importance of diversification. It shows the returns of various assets classes and that of a representative diversified portfolio over the last 10 years, with the penultimate column being their respective annualised 10-year returns.
There is huge variation in winners and losers in any discrete year, but interestingly the well-diversified portfolio, including stocks, bonds and some other asset classes, has returned around 7% per year over this time period. While the risk of loss is still an unavoidable part of investing, the diversified portfolio has also provided a much smoother ride for investors than investing in equities alone, as shown by its position in the chart’s volatility column
A diversified investment strategy must be tailored to each individual’s financial goals, time horizon, and risk tolerance. Every investor’s situation is different. What works for one person may not work for another. Some may prefer a more aggressive investment strategy with a focus on equities, while others might want greater stability with more bonds or cash.
Regular portfolio reviews and adjustments are crucial for staying on track toward your financial goals. Major life events, such as changes in income, family obligations, or retirement plans, may require modifications to your portfolio’s allocation. This is where professional advice becomes invaluable.
So, the key things to remember are :
Diversification isn’t just a buzzword; it’s a critical strategy for managing risk and achieving financial success over the long term. By diversifying your investments across various asset classes, sectors, and geographical regions, you create a more resilient portfolio while increasing the likelihood of growth.
If you’re unsure whether your portfolio is well-diversified, or if you need guidance on creating a strategy that aligns with your financial goals, don’t hesitate to reach out for professional advice. As your trusted independent financial adviser, Fairstone is here to help you create a portfolio that can stand the test of time and help you reach your financial aspirations.
Remember, the secret to successful investing is not just about identifying the right opportunities it’s about ensuring that your portfolio is strategically designed to navigate the inevitable ups and downs of the market. Diversification is the proven strategy that can help you do just that!
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
The purpose of this blog is to provide you with clarity amid the recent turbulence in global markets, triggered by the US administration’s actions. These market shifts affect not only businesses and trade but also have a direct impact on your personal financial landscape, from pensions to mortgages, inflation to taxes. The secret to navigating this uncertainty and emerging stronger lies in maintaining a long-term perspective. Rather than reacting impulsively, it’s about sticking to a strategy grounded in diversification, smart planning, and patience. Let’s explore what’s happening and how you can position yourself for long-term success.
There’s no sugar-coating, global markets took a hit in response to the tariffs. But if you’re investing for the long term, market volatility isn’t something to fear, it’s something to expect.
That’s why the timeless investing principles of time in the market and diversification matter more than ever.
Trying to time the market, buying low and selling high with perfect precision, is extremely difficult, even for professionals. Instead, history shows that staying invested through market ups and downs gives you a much better chance of long-term success. Missing just a few of the market’s best days can significantly reduce returns.
Just as important is diversification. Spreading your investments across regions, industries, and asset types helps cushion your portfolio against shocks in any one area. It’s your best defence against the unexpected and trade tariffs certainly count as that.
For pension investors, the recent volatility may feel unsettling. But reacting impulsively by cutting contributions or changing strategy could lock in losses and harm your future retirement income.
If you’re nearing retirement, it might be wise to delay taking income via drawdown until markets stabilise. Alternatively, more people may consider annuities, especially while rates remain attractive. Right now, a 65-year-old with a £100,000 pension could secure up to £7,685 a year from a level annuity with a five-year guarantee.
Just remember annuities are usually fixed for life, so it’s crucial to weigh all options before committing.
If you’re already in retirement using drawdown, consider a natural yield approach—only withdrawing income generated by your investments. And to weather short-term storms, hold one to three years’ worth of essential expenses in an easy-access account.
It’s tough to predict how tariffs will ultimately affect inflation. On one hand, companies may raise prices to offset higher costs. On the other, we might see price wars as firms compete for access to the US market or UK consumers could benefit from surplus goods diverted from the US.
This inflation uncertainty complicates things for the Bank of England. For now, markets expect further interest rate cuts to support economic growth, which could be good news for borrowers.
What about mortgages? If you’re due to remortgage, it’s worth locking in a deal early. Rates may fall further but if they rise, you’ll be glad you secured a lower rate now.
Could taxes go up? If growth slows due to global uncertainty, the government may be forced to find ways to raise revenue especially come Autumn Budget season. That’s why now is a great time to take advantage of existing tax wrappers like ISAs and pensions, which can help protect more of your money from future tax changes.
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
In a recent move that has heightened global trade tensions, the US administration announced a series of sweeping reciprocal tariffs. In response, China has introduced a 34% blanket tariff on all US imports starting April 10, alongside export restrictions on critical rare earth materials and sanctions targeting key US defence and technology firms.
The purpose of this blog is to help you navigate the recent surge in global trade tensions and understand the long-term impact of these events on your financial strategy. These trade moves could have a ripple effect on markets, impacting everything from stock prices to supply chains, but the key to weathering this uncertainty lies in staying focused on your long-term goals. Remember, the secret to long-term success in investing isn’t about trying to time the market, it’s about time in the market. Despite the noise, sticking to a consistent strategy is what will ultimately drive your success.
Markets can, and do, experience periods of downturns. These moments may feel unsettling, but they’re typically short-lived. The most effective approach is to stay committed to your investment strategy, even when markets are turbulent.
History has consistently shown that drawdowns are entirely normal in any given year, and that markets recover and often bounce back just as sharply as they fall. Trying to time the market by selling in a panic or holding off on new investments until things “settle down” can significantly impact your long-term financial returns.
In the chart below looking at the UK FTSE All-Share index over a near-40 year period, the red dots represent the maximum intra-year equity decline in every calendar year, or the difference between the highest and lowest point reached by the market in those 12 months, while the grey bars represent the full year’s return. While market pullbacks are a normal part of investing, history shows that in most years, markets still finish in positive territory. Double-digit declines may occur, but they’re often followed by strong recoveries. Rather than trying to predict short-term dips, investors should stay focused on long-term goals.
An analysis of stock market returns over a 20-year time period shows the power of remaining invested and not trying to time the market. Using data from the US S&P 500 market, the chart below shows the enormous cost of missing just a handful of the best trading days over the period, which encompasses the global financial crisis, Covid and numerous other notable market events.
Whilst the chart below illustrates values in US dollars, the same principles apply to pounds sterling. If you were to invest £10,000 in the S&P 500 in 2004 and stay fully invested through to the middle of 2024, you would have over £70,000. However, if you missed just the 10 best trading sessions, you would be left with under £35,000. The reason? Market timing is incredibly difficult. Over the last 20 years, seven of the 10 best days occurred within 15 days of the 10 worst days.
One of the smartest strategies for managing risk is diversification. Spreading your investments across various asset classes, sectors, and global markets. A well-diversified portfolio acts as a cushion during volatile periods, with strong-performing assets often helping to offset areas of your portfolio that are not delivering as strong rewards.
This balanced approach allows investors to ride out market fluctuations while still being positioned for long-term growth.
The evidence is clear: staying invested through the ups and downs of the market leads to stronger outcomes over time. Long-term investing rewards patience, discipline, and consistency. It also allows you to take advantage of powerful benefits such as compounding, tax efficiencies, and the natural rebound of economies.
It’s perfectly reasonable to keep some cash on hand for short-term needs. But for your longer-term goals, whether it’s retirement, buying a home, or leaving a legacy, the best approach is to remain invested in a strategy that aligns with your personal risk profile and objectives.
As this final chart shows, using representative data from US markets that read across directly to UK investors, while markets can always have a bad day, week, month or even a bad year, history suggests investors are much less likely to suffer losses over longer periods. It’s important to keep a long-term perspective. Investors should not necessarily expect the same rates of return in the future as we have seen in the past, but a diversified blend of stocks and bonds has not suffered a negative return over any 10-year rolling period historically, despite the great swings in annual returns we have seen since 1950:
Attempting to predict market movements often leads to missed opportunities. Staying consistently invested allows you to benefit from long-term growth and recovery periods.
Market downturns are inevitable, but history shows they are usually short-lived. Maintaining your investment strategy during turbulent times is more effective than reacting emotionally.
Even missing a few top-performing days can drastically reduce long-term returns. A disciplined, stay-the-course approach typically outperforms panic selling.
A well-diversified portfolio across asset classes, sectors, and regions—mitigates risk and provides stability during market swings.
Sticking with your investment plan through economic cycles harnesses the power of compounding and positions you for greater financial security over time.
If you’re looking to revisit your financial plan or explore new investment opportunities, we’re here to guide you. Our team can offer personalised advice and insights tailored to your unique circumstances, helping you navigate uncertainty with confidence.
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
Every year, billions of pounds in unpaid taxes deprive the UK’s public services of crucial funding. To tackle this issue, Chancellor Rachel Reeves has unveiled an ambitious strategy to close the tax gap, ensuring a fairer system where individuals and businesses contribute their fair share. With measures projected to generate over £1 billion annually by 2029/30, the government is ramping up enforcement, digitalisation, and anti-avoidance efforts to create a more equitable tax landscape.
The scale of unpaid tax in the UK is staggering. By December 2024, HMRC reported tax debt exceeding £44 billion—more than double the figure from five years ago. Shockingly, around £20 billion of this debt is over a year old, making recovery increasingly difficult.
To combat this crisis, the government is enhancing HMRC’s capabilities with a targeted debt recovery programme. This includes:
A major pillar of reform is the continued rollout of Making Tax Digital (MTD), designed to simplify tax management for individuals and businesses. From April 2028, sole traders and landlords earning over £20,000 will be required to use MTD for income tax Self Assessment (ITSA).
For smaller taxpayers earning below the MTD threshold, the government is working on enhancing reporting systems to ease compliance. Additionally, stricter penalties for late payments on VAT and ITSA will reinforce timely submissions, reducing the risk of tax shortfalls.
The government is intensifying efforts to combat tax avoidance and fraudulent schemes, with a focus on:
As part of a new tax fraud initiative, HMRC aims to increase criminal prosecutions, particularly targeting wealthy individuals, corporate fraud, and offshore tax evasion. By 2029/30, HMRC plans to process 600 serious tax fraud cases annually, up from 500 today.
To further strengthen compliance, HMRC is revamping its whistleblower reward scheme, offering financial incentives linked to tax recovered from tip-offs. Inspired by successful models in the US and Canada, this initiative aims to target large-scale tax evasion.
Additionally, a joint task force with HMRC, Companies House, and the Insolvency Service is tackling ‘phoenixism’—a practice where businesses dissolve to avoid tax liabilities. New measures include:
The government is also reinforcing offshore tax compliance by investing in AI, data analytics, and private sector expertise. These advancements will help HMRC detect hidden wealth and recover an estimated £500 million in offshore tax revenue over the next five years.
Further modernisation efforts include:
These reforms mark a crucial step toward closing the UK’s tax gap, ensuring fair contributions from all taxpayers while safeguarding essential public funding. By embracing digitalisation, enhancing enforcement, and cracking down on tax avoidance, the government is creating a tax system that is both fair and future-ready.
With HMRC’s transformation roadmap expected this summer, businesses and individuals can anticipate a streamlined, transparent tax framework designed to support economic growth and financial integrity across the UK.
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THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
Chancellor Rachel Reeves said that the Office for Budget Responsibility (OBR) has downgraded growth projections for 2025 but has upgraded forecasts for every year thereafter for the remainder of this parliament. She told MPs: “There are no shortcuts to economic growth. It will require long-term decisions. It will demand hard work. It will take time for the reforms we are implementing to have an impact on the everyday economy.”
Our Guide to Spring Forecast Statement 2025 summarises the key points announced.
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THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
Chancellor Rachel Reeves has outlined a transformative vision for Britain’s future, anchored in the government’s Plan for Change. This strategy is designed to drive economic growth, strengthen the National Health Service (NHS), and reinforce national security—all while maintaining financial stability.
Last autumn’s Budget marked a significant fiscal reset, ensuring a sustainable financial future for the UK. The government tackled £22 billion in financial pressures, introduced groundbreaking tax reforms, and implemented strong fiscal rules to protect working households. These decisive measures have safeguarded public finances while enabling vital investments in public services and economic growth.
The Chancellor reaffirmed the government’s commitment to supporting working families, citing last year’s National Minimum Wage increase and fuel duty freeze. These policies have already had a tangible impact, with the Bank of England reducing interest rates three times since the start of the parliamentary term. By the end of 2024, real wages are expected to rise at their fastest pace in over three years, alleviating the cost-of-living pressures on millions.
Despite global economic challenges—ranging from geopolitical tensions in Europe to rising borrowing costs—the UK remains resilient as a leading trading economy. The Chancellor assured that, despite these headwinds, Britain is well-positioned to navigate uncertainty and sustain long-term growth.
Economic forecasts now suggest Britain will outpace previous growth predictions from 2026 onwards. Thanks to decisive action, the government has met its fiscal targets two years ahead of schedule, maintaining a balance between financial discipline and pro-growth policies.
With a solid foundation in place, the government is adopting bold measures to boost public services, economic expansion, and national security. This includes a strong focus on protecting working families’ financial futures and fortifying the country’s long-term prosperity.
A key announcement in the Spring Statement is the government’s fully funded commitment to increasing defence spending. By 2027, defence expenditure will reach 2.5% of GDP, with an extra £2.2 billion allocated to the Ministry of Defence (MOD) next year alone. This investment reinforces the UK’s global security leadership and strengthens its partnerships with NATO allies.
Additionally, the government is reforming public services to improve efficiency while ensuring that welfare spending reaches those who need it most. Enhancing tax collection efforts will also help ensure tax fairness and bolster public finances.
Investment is central to the Plan for Change. Over the next five years, the government is committing £13 billion to infrastructure projects and launching a construction skills initiative to train 60,000 new workers. A further £2 billion is earmarked for social and affordable housing, addressing the UK’s housing crisis.
Major planning reforms will also drive economic expansion. Updates to the National Planning and Policy Framework (NPPF) are expected to lead to the construction of 170,000 additional homes, adding £6.8 billion to the economy by 2029/30. By 2034/35, GDP growth from these reforms could exceed 0.4%—all at no direct fiscal cost.
These reforms will also have a broader economic impact. By 2029/30, they are projected to reduce public borrowing by £3.4 billion, strengthening the UK’s financial stability. The government’s approach—focused on capital investment, regulatory improvements, and the proposed Planning and Infrastructure Bill—demonstrates a clear commitment to sustainable growth.
The Chancellor’s Plan for Change is more than a response to today’s challenges; it is a roadmap for a thriving, inclusive, and globally competitive Britain. Through a combination of fiscal responsibility, strategic investment, and innovative reform, the UK is poised for long-term success.
With a vision that balances short-term relief with long-term stability, the government is setting the stage for a prosperous future—one where working families, businesses, and public services all benefit.
This bold and decisive agenda will shape Britain’s economic future, ensuring stability, security, and sustained growth for generations to come.
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THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
