The last few weeks have been a whirlwind for investors.
As President Donald Trump makes his presence felt across the world with the introduction of widespread tariffs, markets have fallen sharply.
A trade war which twists and turns by the day, involving the world’s largest economies, threatens to upend the international order and the trade we’ve all become used to.
But most of all it creates uncertainty.
For consumers, businesses and policymakers. Uncertainty often means decision making is delayed, hitting demand and risking recession.
This article isn’t advice. Investments and any income they produce will rise and fall in value, meaning you could get back less than you invest. If you’re not sure if an investment is right for you, ask for financial advice. Remember, past performance isn’t a guide to the future, yields are variable, and income isn’t guaranteed.
UK stock market performance
Over the last year, the largest companies listed in the UK, represented by the FTSE 100 index, have been the best performing part of the stock market.
They rose in value by 11.90%*, significantly outpacing the 1.10% return from medium sized companies (FTSE 250) and the 7.40% return from UK smaller companies (FTSE Small Cap ex ITs).
As a style, value worked better than growth, with the FTSE UK Value index delivering gains of 13.42%, ahead of the FTSE UK Growth index at 7.10%
Annual percentage growth
Mar 20 – Mar 21 | Mar 21 – Mar 22 | Mar 22 – Mar 23 | Mar 23 – Mar 24 | Mar 24 – Mar 25 | |
|---|---|---|---|---|---|
FTSE 100 | 21.91% | 16.08% | 5.39% | 8.38% | 11.90% |
FTSE 250 | 45.14% | 0.46% | -7.88% | 8.69% | 1.10% |
FTSE Small Cap ex ITs | 74.91% | 5.50% | -12.91% | 11.03% | 7.40% |
FTSE UK Growth | 12.96% | 13.94% | 5.17% | 7.80% | 7.10% |
FTSE UK Value | 23.44% | 16.70% | 6.07% | 11.06% | 13.42% |
However, since the end of March, US tariffs on UK steel and aluminium have come into effect, as well as a 10% tariff on a range of other goods.
They haven’t come as a surprise though, with tariffs featuring as a key promise in Trump’s election campaign.
There’s some evidence that ahead of this, businesses have changed their behaviour to keep their costs down. Exports from the UK to the US in February rose by £500mn, contributing to a better than expected 0.5% growth rate for the UK economy.
It’s important for investors to remember though that the UK stock market isn’t the same as the UK economy. The UK stock market is home to businesses earning revenues from consumers across the globe.
Here’s how different areas of the UK market performed over the last year.
How have the UK Wealth Shortlist funds performed?
Our Wealth Shortlist selections delivered mixed performance over the past year, and we tend to expect this from such a wide range of funds.
Investing in funds isn’t right for everyone. Investors should only invest if the fund’s objectives align with their own, and there’s a specific need for the type of investment being made. Investors should understand the specific risks of a fund before they invest, and make sure any new investment forms part of a long-term diversified portfolio.
For more details on each fund and its risks, see the links to their factsheets and key investor information.
UK Growth
The best-performing fund in the UK Growth section of the Wealth Shortlist over the last year was the Fidelity Special Situations fund, managed by Alex Wright.
Wright's contrarian approach and focus on unloved companies differentiates the fund from lots of its peers.
He’s well supported by co-manager Jonathan Winton and Fidelity’s extensive analyst team.
And we think the fund has good growth potential over the long term.
The fund invests in higher-risk smaller companies and the manager has the flexibility to invest in derivatives which, if used, can also add risk.
The weakest performer of our selections in the UK Growth sector was Aegon Ethical Equity. The fund has been managed by experienced investor, Audrey Ryan, since 1999.
The fund invests in UK companies using an 'exclusions-based' approach, avoiding those involved in activities deemed unethical.
This way of investing means the fund has a bias towards higher-risk small and medium-sized companies. As these companies tend to rely more heavily on the health of the UK economy, it makes them riskier.
This, combined with the fund's lack of exposure to industries like oil & gas and tobacco, means its performance can be different to more conventional UK equity funds
Annual percentage growth
Mar 20 – Mar 21 | Mar 21 – Mar 22 | Mar 22 – Mar 23 | Mar 23 – Mar 24 | Mar 24 – Mar 25 | |
|---|---|---|---|---|---|
Fidelity Special Situations | 46.65% | 8.74% | 2.99% | 11.46% | 12.52% |
Aegon Ethical Equity | 35.27% | -2.21% | -8.56% | 14.28% | -0.76% |
FTSE All Share | 26.71% | 13.03% | 2.92% | 8.43% | 10.46% |
UK Equity Income
Schroder Income, managed by Nick Kirrage and Andrew Evans, was the best performing of our UK equity income funds selected on the Wealth Shortlist over the last year.
The fund has a distinct value style bias and the managers use a contrarian approach to grow income and capital over the long term.
This means investors will need to adopt a longer-term view as there will be times when the fund’s style will be out of favour and it could underperform.
The fund is also relatively concentrated which increases risk.
Overall, we think Kirrage and Evans have the experience and support to deliver good long-term returns to patient investors.
The weakest of our UK Equity Income fund selections was Janus Henderson UK Responsible Income.
The fund doesn’t invest in companies with significant involvement in areas some investors consider unethical. Instead, it mainly focuses on large and medium-sized dividend-paying companies in the UK.
The manager has the flexibility to invest in higher-risk smaller companies too.
Both funds take charges from capital, which could boost income, but reduces the potential for capital growth.
Annual percentage growth
Mar 20 – Mar 21 | Mar 21 – Mar 22 | Mar 22 – Mar 23 | Mar 23 – Mar 24 | Mar 24 – Mar 25 | |
|---|---|---|---|---|---|
Schroder Income | 39.62% | 20.88% | 1.54% | 7.38% | 16.43% |
Janus Henderson UK Responsible Income | 31.68% | 6.10% | 1.81% | 10.45% | 3.76% |
FTSE All Share | 26.71% | 13.03% | 2.92% | 8.43% | 10.46% |
UK Smaller & Medium sized Companies
The strongest performer in the UK Small and Medium-sized section of the Wealth Shortlist over the past year was Artemis UK Smaller Companies.
We added the fund to the Wealth Shortlist in December 2024.
The fund invests in higher-risk smaller companies listed on the UK stock market. Its valuation-focused approach means the fund invests differently to many of its peers in the IA UK Smaller Companies sector.
We think fund manager Mark Niznik has the experience, skill and support to deliver good long-term returns to patient investors, although there are no guarantees.
The worst-performing fund in the UK Small and Medium-sized section of the Wealth Shortlist was the FTF Martin Currie UK Mid Cap fund, managed by Richard Bullas.
The fund invests in medium-sized companies, often considered the ‘sweet spot’ between company growth potential and maturity. The fund didn’t invest in a number of companies that were taken over through 2024, posing a headwind to performance.
Investing in smaller companies is higher risk – so investors should invest for the long term and be prepared for volatility along the way. The fund is concentrated which also adds risk.
Annual percentage growth
Mar 20 – Mar 21 | Mar 21 – Mar 22 | Mar 22 – Mar 23 | Mar 23 – Mar 24 | Mar 24 – Mar 25 | |
|---|---|---|---|---|---|
Artemis UK Smaller Companies | 49.65% | 9.14% | -5.70% | 7.87% | 3.64% |
FTSE Small Cap ex ITs | 74.91% | 5.50% | -12.91% | 11.03% | 7.40% |
Mar 20 – Mar 21 | Mar 21 – Mar 22 | Mar 22 – Mar 23 | Mar 23 – Mar 24 | Mar 24 – Mar 25 | |
|---|---|---|---|---|---|
FTF Martin Currie UK Mid Cap | 39.20% | -3.24% | -4.91% | 9.95% | -9.18% |
FTSE 250 ex ITs | 47.54% | -0.55% | -7.45% | 10.05% | 0.37% |