WLI Bespoke Portfolio Update Q3 2025

The third quarter of 2025 was defined by resilience in global equity markets, despite a back-drop of trade uncertainty, changes in central bank policies and a continued focus on the artificial intelligence (AI) theme. After a turbulent start to the year, markets steadied, with many major indices delivering solid returns over the summer months.

Big Tech once again dominated headlines. Companies at the forefront of AI adoption and infrastructure have performed well, though the leadership is narrowing. While enthusiasm remains strong, the high valuations in some parts of the sector now leave little room for disappointment and there are growing questions around if genuine growth potential lies ahead or whether market expectations have run too far ahead of reality.

Regionally, European markets showed steady progress, helped by a weaker dollar and resilience in banks, industrials and defence companies. US markets retained their leadership role but are increasingly concentrated in a handful of large technology names. Emerging markets have delivered notable gains, helped by supportive local central bank policies and currency movements. Corporate earnings results were generally reassuring. 80% of firms in the S&P 500 beat expectations, particularly those able to protect margins despite rising costs. This helped restore confidence after earlier fears that slowing global growth and the pressures of tariffs might weigh heavily on business profits. That said, inflationary pressures are still a challenge, and cyclical companies remain more exposed to volatility in earnings,

For investors, the lessons of this quarter are clear. Diversification remains essential, as performance has diverged significantly across regions and sectors. Volatility has returned, but it creates opportunities to enter high-quality businesses at more attractive levels. Above all, companies with strong balance sheets, pricing power and dependable cash flows are best placed to weather whatever comes next.

Model portfolio performance as at 30 September 2025
Portfolio 1 month 3 months 6 months 1 year Since
inception
Wealthline Defensive 0.98 2.41 4.30 4.70 17.73
Wealthline Cautious 1.38 3.73 6.57 6.51 28.41
Wealthline Balanced 1.76 4.83 8.78 8.35 38.78
Wealthline Growth 2.31 6.22 11.23 10.18 47.79
Wealthline Adventurous 2.65 6.95 12.82 11.01 56.09