Article by Mhairi
If you have an investment planner then 2025 was probably one of the best years for investment returns.
Figures show that the FTSE 100 index grew by 22.8% in 2025 taking into account dividends. That’s the best year for growth since the financial crisis in 2009. Put into the context of some previous years this is great news for those using an investment planner or even managing their own investments. Back in 2020 the index lost 11.5% for example. However, over the last 10 years the average return has been 9.1% per year.
According to AJ Bell the FTSE also did better than the S&P 500 index in the US.
These are solid equity backed returns based on company performance. Very different to the speculative growth we’ve looked at in the crypto world.
According to the Investment Association gold has performed the best with average returns on gold values of 52%.
In terms of investment markets, Latin America leads the way with 40% growth followed by China 23% and Japan 18%. By contrast India has lost 6% in value and UK Index Linked gilts have returned just 0.9%.
Find an investment planner.
Being able to demonstrate the value of an investment planner is an important part of the job. Especially considering that there will be over £7 trillion in assets passing down a generation over the next 30 years.
The move to targeted support will also help. According to Royal London 21.5 million people could benefit from the new abridged service. If it helps people save and manage their finances better, then it will be a welcome development. The FCA have also written to firms asking for their views on the current requirements for an annual client review. The FCA is considering introducing more flexibility for firms to engage with clients at different frequencies to meet the clients needs. Some firms would like to take advantage of this and provide a more transactional services to their clients. But as always, the charges being applied need to be carefully considered. We have always offered a broad approach to ongoing advice, offering a range of options from our Gold Service, through to our Digital service and a transactional approach if that suits the client best.
At the opposite end of the investment planner scale, the FCA have determined that investors with over £10 million can be exempted from the Consumer Duty rules. That means that they will need to have their suitability for investments assessed by their advisor. They will be treated as professional investors. Subject to their opting out of the protections.
Trust your investment planner
One of the most important things is to trust your investment planner. For example, St James Place have found that 25% of clients made changes to their financial plans as a result of the speculation around what might be included in the budget.
20% of those now regret the changes that they made.
Most of those changes were made to investment portfolios with many people switching their money into cash, or even gold, thinking that markets might crash on the back of the budget. Of course, the market reacted in the opposite way. Some even moved into higher risk investments like crypto. This type of knee jerk reactions to speculation should always be avoided if you are looking for long term stability and growth from your investments.
Making a Will
One of the first things your investment planner is likely to do is to ensure that you have a Will in place. According to Rathbones over 50% of people still haven’t made a Will.
They also found that the number of people leaving a bequest to a charity has fallen to 30%. Down from over 40% the year before. There doesn’t seem to be any clear reason why this is happening, although it could be argued that woke agendas in some charities may be turning donors away. Go woke and go broke as they say. The cost of reduced donations is estimated to be £1.5 billion.
Get more information.
If you need investing advice from an investment planner then why not contact Christina today. She offers a free initial meeting to discuss your requirements and explain how our service works. You are under no obligation to use us after that if you don’t want to and we won’t pester you.
So why not call us today on 01282 614444 or e mail us enquiries@ccfps.co.uk or use our contact form online.
