Here’s our update on what's been happening in the markets and how our range of Ready-made Investment (RMI) funds are performing.
Remember the value of investments can fall as well as rise. You may not get back what you invest. We're not recommending Ready-made Investments as being suitable for you based on your personal circumstances, nor do we offer personal financial advice.
If you're unsure about this investment’s suitability for you, or you’re not confident about making your own investment decisions, you should seek independent advice.
The final quarter of 2024 was dominated by a plethora of fiscal developments across the world – US elections, the UK Budget, disruptions in Germany and France, unrest in South Korea, and strong signalling from policymakers in China to support the economy.
In the US, President Trump won the election in what ended up to be a decisive victory. He won all seven swing states and the popular vote. Not only that, Republicans gained control of Congress, securing a majority in both the House and Senate.
A Republican sweep has important policy implications. While campaign trail talk doesn't always translate into policy action, this outcome likely means that more of President Trump’s policy agenda will come to pass.
Meanwhile, the UK Budget’s bark proved to be far worse than its bite. The Chancellor announced a significant rise in spending, funded by a mix of tax rises and an increase in debt. Bank of England projections saw growth and the near-term inflation picture revised higher.
Elsewhere, China’s structural economic issues remain – a deep property crisis, deflationary (falling prices) concerns, and rock-bottom consumer confidence. Rumours abound about the magnitude, type, and timing of much-needed stimulus.
The quarter was a great reminder to tune out the noise and stay invested. It’s not difficult to imagine 2025 being as eventful, so remember to keep focused on your long-term investment goals.
Our Strategic Asset Allocation (SAA) is our optimum mix of shares, bonds and cash, designed to give you the best portfolio outcome for the long term. While our Tactical Asset Allocation (TAA) is the process where we actively deviate from our SAA, in order to take advantage of short-term investment opportunities.
In the previous quarter, we reduced our exposure to the British pound (GBP) in expectation of an appreciating US dollar. Following a sustained period of US dollar strength, we closed this position.
The US dollar had appreciated relative to the pound after growth surprises turned positive while UK economic data deteriorated. Market sentiment and positioning on the US dollar also turned less pessimistic, which supported the strengthening of the dollar. Finally, the election win of President Trump boosted US inflation expectations as fears over a tariff war intensified, further supporting the dollar.
You can relax in the knowledge that we will continue to monitor and manage your RMI fund in line with its objectives. We’ll update you regularly on their performance and any changes we’ve made.
Of course, if you’d like to see the latest performance of your investments, simply log-in to your Smart Investor account any time.
This Ready-made Investment takes a low-risk approach, aiming for modest growth in the value of your investment in the medium to long term, while seeking to protect your capital. Its approach is to invest in a blend of passive funds giving you access to different asset classes from around the world. It invests mostly in cash and bonds, with some exposure to shares, mostly in developed markets.
|
Year from 31 December |
2023-24 |
2022-23 |
2021-22 |
2020-21 |
2019-20 |
|---|---|---|---|---|---|
|
Fund (net) |
5.23 |
7.17 |
-10.74 |
3.03 |
4.68 |
|
1 Month |
3 Months |
6 Months |
1 Year |
3 Years p.a. |
5 Years p.a. |
|---|---|---|---|---|---|
|
-0.07 |
0.81 |
3.09 |
5.23 |
0.22 |
1.66 |
Source: Morningstar as at 31 December 2024
The table shows the performance of the accumulation units of the fund, on a total returns basis. Past performance of investments is not a reliable indicator of their future performance.
This Ready-made Investment choice means you’ll be taking more risk than Barclays Wealth Growth Markets 1. It aims to achieve better returns than cash over the longer term, but also seeks to reduce the risk of significant capital loss. It still has a high exposure to lower-risk assets, investing largely in bonds but also gives some exposure to shares, primarily developed market shares.
|
Year from 31 December |
2023-24 |
2022-23 |
2021-22 |
2020-21 |
2019-20 |
|---|---|---|---|---|---|
|
Fund (net) |
7.49 |
8.69 |
-10.59 |
5.08 |
6.73 |
|
1 Month |
3 Months |
6 Months |
1 Year |
3 Years p.a. |
5 Years p.a. |
|---|---|---|---|---|---|
|
-0.29 |
1.61 |
3.64 |
7.49 |
1.47 |
3.22 |
Source: Morningstar as at 31 December 2024
The table shows the performance of the accumulation units of the fund, on a total returns basis. Past performance of investments is not a reliable indicator of their future performance.
With this Ready-made Investment choice, you’re taking a moderate level of risk to seek long-term growth. There’s more exposure to riskier investments than in our lower risk profile Ready-made Investments, but it’s still well diversified to try to mitigate some of that risk. At this level, short-term changes in value are more likely and while you’ll be invested in both bonds and shares, it’ll lean more towards the latter.
|
Year from 31 December |
2023-24 |
2022-23 |
2021-22 |
2020-21 |
2019-20 |
|---|---|---|---|---|---|
|
Fund (net) |
10.28 |
11.14 |
-9.74 |
8.74 |
8.25 |
|
1 Month |
3 Months |
6 Months |
1 Year |
3 Years p.a. |
5 Years p.a. |
|---|---|---|---|---|---|
|
-0.42 |
2.09 |
4.02 |
10.28 |
3.42 |
5.42 |
Source: Morningstar as at 31 December 2024
The table shows the performance of the accumulation units of the fund, on a total returns basis. Past performance of investments is not a reliable indicator of their future performance.
This Ready-made Investment takes a moderate-high approach to risk, aiming to generate higher growth than our lower risk options. To offer the potential for bigger rewards, it introduces more risk, which also means more chance of experiencing losses. It invests largely in shares, making up more than half of your investment and while it still gives some exposure to lower-risk investments like bonds, they’ll be a smaller section of your overall investment.
|
Year from 31 December |
2023-24 |
2022-23 |
2021-22 |
2020-21 |
2019-20 |
|---|---|---|---|---|---|
|
Fund (net) |
12.75 |
12.40 |
-8.81 |
12.46 |
9.10 |
|
1 Month |
3 Months |
6 Months |
1 Year |
3 Years p.a. |
5 Years p.a. |
|---|---|---|---|---|---|
|
-0.20 |
2.93 |
4.35 |
12.75 |
4.94 |
7.23 |
Source: Morningstar as at 31 December 2024
The table shows the performance of the accumulation units of the fund, on a total returns basis. Past performance of investments is not a reliable indicator of their future performance.
With this Ready-made Investment you’re taking a high level of risk, seeking to achieve substantial long-term growth. Most of the holdings will be in higher risk investments and you may experience considerable day-to-day fluctuations in value. As you’re chasing bigger rewards, there’s also a bigger chance of experiencing losses. With this option, significantly more than half of the fund will be in shares and although there’s some exposure to fixed-income investments, it’s mostly in emerging markets bonds.
|
Year from 31 December |
2023-24 |
2022-23 |
2021-22 |
2020-21 |
2019-20 |
|---|---|---|---|---|---|
|
Fund (net) |
15.08 |
13.03 |
-8.35 |
15.24 |
9.86 |
|
1 Month |
3 Months |
6 Months |
1 Year |
3 Years p.a. |
5 Years p.a. |
|---|---|---|---|---|---|
|
0.00 |
3.76 |
4.66 |
15.08 |
6.03 |
8.58 |
Source: Morningstar as at 31 December 2024
The table shows the performance of the accumulation units of the fund, on a total returns basis. Past performance of investments is not a reliable indicator of their future performance.
|
Fund |
Cash & Short Maturity Bonds |
Developed Government Bonds |
Investment Grade Bonds |
High Yield & Emerging Market Bonds |
Developed Markets Equities |
Emerging Markets Equities |
|---|---|---|---|---|---|---|
|
Global Markets Defensive |
66.0 |
4.0 |
10.0 |
2.0 |
13.0 |
5.0 |
|
Global Markets Cautious |
33.0 |
5.0 |
22.0 |
2.0 |
27.0 |
11.0 |
|
Global Markets Balanced |
2.0 |
7.0 |
33.0 |
2.0 |
40.0 |
16.0 |
|
Global Markets Growth |
2.0 |
5.0 |
18.0 |
2.0 |
51.0 |
22.0 |
|
Global Markets Adventurous |
2.0 |
3.0 |
4.0 |
2.0 |
61.0 |
28.0 |
Please note: The actual asset allocation may deviate from those weights shown due to intentional shifts we make to take advantage of short-term opportunities and risks, as we see them.
You can buy your Ready-made Investment using an existing account.
You can choose from two types of account. Once your account is open, you can buy your chosen Ready-made Investment.
The most popular account people choose when they start to invest.
You can pay in up to £20,000 per tax year into our award-winning ISA.
Any returns you make are tax free.
Tax rules can change in future and their effects on you will depend on your indvidual circumstances.
A flexible account if you’ve already used your ISA allowance for the current tax year or you’re already paying into an ISA with another provider.
No limits on the amount you can invest.
The return you make on your investments will be taxable but there are allowances that may mean you don’t pay tax, or it's reduced.1
Smart Investor is an investment service for UK residents aged 18 or over. The service is not available to US persons, even if they are resident in the UK.
