UK equities have posted one of their best year-to-date performances in three decades, despite global turmoil, says Rathbones.
The FTSE All-Share Index delivered a 14.5% total return in the year to 31 August 2025, outperforming all major markets bar the German DAX.
It makes 2025 the fifth strongest year for UK equities since 1995, defying expectations amid a backdrop of inflationary concerns, rising government bond yields and sluggish growth. By contrast, sterling investors in the S&P 500 have seen gains of just 3%, with the MSCI World Index up 5%.
Alexandra Jackson, fund manager of the UK Opportunities fund at Rathbones, said: “Despite all the doom and gloom, the All-Share has delivered one of its best year-to-date performances in three decades – a reminder that markets often move ahead of the headlines.
“While investors remain cautious about government debt and inflation, strong company earnings and resilient demand have underpinned returns. This performance shows why the UK should not be overlooked in a diversified portfolio.”
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