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Published: April 2026
Latest investment update
Over longer periods of time (five years or more), investments such as stocks, shares and funds have the potential to give you higher returns compared to cash savings. But the value of investments can fall as well as rise. There is a chance you may get back less than you put in. Eligibility criteria, fees and charges apply. Past performance is not an indicator of future performance and should not be relied on as such. You should continue to hold cash for your short-term needs.
What’s been happening in markets?
At the start of the month, tension in the Middle East increased. When events like this occur, the price of oil often rises, which can worry investors. Higher oil prices can make everyday goods more expensive and slow global economic growth. Because of this, both stock markets and bond markets have been very responsive to changing negative and positive headlines throughout the month.
How did markets behave?
Markets were volatile, meaning prices changed quickly as investors reacted to news about the conflict and concerns about how long it might last.
When uncertainty increases, equity markets can come under pressure — and this was the case in March. Global equities declined by just over 7% over the month in US dollar terms, equivalent to a fall of around 5.4% in sterling. Although selling was broad‑based across regions, US markets generally held up better than those elsewhere.
A few helpful things to keep in mind:
- Market shocks often pass.
Conflicts or sudden events can cause short‑term market drops, but historically, markets have usually recovered over 12 months or longer. For more on this read a recent CIO Weekly article from Coutts – the bank behind our funds. - We’re in a stronger position than during the 2022 energy spike.
When the Russia–Ukraine conflict began in 2022, inflation was around 5.5%.
Today, UK inflation is much lower (around 3%), and the global economy is generally healthier. - Energy price spikes are hard to avoid.
When oil and gas prices rise, it affects almost all investments—both shares and bonds—making it difficult to protect portfolios completely from these shocks over the short term.
What does this mean for you?
Although recent events have pushed oil prices up, the global economy is in a much better place than it was during the big energy spike in 2022.
- Global growth has picked up speed, which helps make the economy more resilient.
Inflation pressures are mild for now, but we are watching the situation closely, particularly if the conflict extends beyond current expectations.
- Together, this means the world economy is better able to handle surprises.
Our investment approach
We continue to position your investments so they can benefit from economic growth. This means:
- We currently hold more equities (company shares) than government bonds.
- We keep your investments diversified across different regions, industries and currencies to help spread risk.
Previous investment updates
Here you’ll find our previous investment market updates.
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Investment fund performance
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