2025 has been a tumultuous year, however, markets had a strong start in January. Over the subsequent quarter, the world was grappling with erratic US tariffs culminating with a market sell off on ‘Liberation Day’. The adage of ‘sell in May and go away’ was put to the test with very strong market returns over the summer. Towards the end of the year, the technology sector had a bit of a wobble due to concerns about an AI bubble, which we have addressed in recent articles. All in all, we’ve had a good year, bolstered by attaining the Sustainability Focused label from the FCA, as well as being recognised at the 2026 Professional Adviser Awards.
From Liberation Day to Sustainability Triumphs
Beyond investing, we engage with our investee companies to track their progress towards various environmental goals. We partnered with our Responsible Investment team for an engagement centred around water, one of our five investment themes. The engagement focussed on water use and efficiency, resilient infrastructure and innovation, and also highlights the issue around ‘forever chemicals’. Read more in our article 'Making A splash'.
The thorn in our side has been the impact of interest rate rises on our Alternatives and Fixed Interest allocations. However, we are expecting interest rates to come down next year and, as a result, money to come back into these asset classes as investors search for yield. Despite the recent negative sentiment towards sustainability, the Sustainable Opportunities Balanced Fund returned +10.5% and the Growth Fund returned +8.4% to the end of November.
Global equity markets are expected to deliver moderate gains in 2026, supported by technological innovation, fiscal stimulus, and selective regional opportunities. We remain focused on balancing optimism with resilience, focusing on quality stocks and secular themes like AI and the energy transition.
Author
Harry Gibbon
Investment ManagerHarry joined Quilter Cheviot‘s internship programme in May 2018 and moved to work with Claudia Quiroz and Caroline Langley later that year. He has since been promoted to an Investment Manager and assists with the management of clients’ portfolios for private clients, pensions, trusts, charities and funds.
Harry is a Member of the Chartered Institute of Securities and Investments and he has completed the CISI Chartered Wealth Management qualification and the CFA Certificate in ESG Investing.
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Sustainable Opportunities Funds
The Sustainable Opportunities Funds invests in companies that make a positive contribution to the world, with a strong underpinning of ethical values.
