2025, Reflections Beyond the Numbers

Markets will close the year having delivered respectable returns. That matters. Financial growth supports savings, and investment, and it provides a degree of stability. But growth is broader than a GDP definition or asset market performance alone. We live in a world of human beings, not just monetary wealth, and progress must also be judged by stability, dignity and opportunity.

Such a distinction feels especially relevant after a year in which markets have performed better than many expected, while everyday life has become more difficult for many. The persistence of inflation, even as headline rates have eased, has undermined the ability of large parts of the population to carve out a consistent existence. Rising costs of food, housing, energy and insurance have steadily eroded financial security, particularly for those without assets. Inflation has been less an abstract statistic and more a daily pressure on living standards.

Alongside this, 2025 has been marked by continued geopolitical strain. Conflict has displaced millions, food insecurity remains elevated in vulnerable regions, and climate-related events have disrupted communities and livelihoods. Markets have largely navigated these pressures. Human systems absorb them more slowly.

Perhaps the most concerning longer-term issue is the growing disengagement of younger people. Across many economies there are clear signs that a cohort is struggling to find its place. Some are not employed at all; others are in work that feels insecure or unfulfilling. Having grown up through financial crises, a pandemic, persistent cost-of-living pressure and now geopolitical uncertainty, trust in institutions has weakened. When effort does not reliably translate into opportunity, disengagement is an understandable response.

Technology adds a further layer of complexity. Artificial intelligence has introduced a powerful new dimension to productivity and innovation, and its potential benefits are substantial. Yet it has arrived faster than the social and institutional guardrails required to integrate it responsibly. For many younger workers, AI represents both promise and anxiety, raising questions about job security, relevance and fairness that remain unresolved.

None of this is an argument against markets. Capital markets remain among the most effective engines ever created for innovation, productivity and rising living standards. Investment continues to support healthcare, infrastructure, energy transition and technological progress across much of the world. Progress has not stopped, but it has become uneven.

History suggests uneven progress carries risk. When inflation erodes stability, opportunity narrows and younger generations lose faith, trust weakens first and resilience later.

Looking ahead to 2026, the opportunity is to think more broadly about what growth means. Financial returns create possibility, but human progress gives them meaning. Peace, inclusiveness and a reduction in poverty are not alternatives to economic success; they are its foundations. Strong returns give investors flexibility. Using that flexibility thoughtfully can help build a world that is not only more investable, but more liveable.

Thank you for your continued trust. I wish you and your families a peaceful year-end and a hopeful start to 2026.

In a noisy and unsettled world, may the year ahead bring steadier hands, quieter minds and a deeper regard for what truly matters.