The Macro Backdrop
Q2 2025 was defined by uncertainty, worry and concern. Recession fears peaked early in the quarter following Trump’s announcement of his Liberation Day tariffs, sparking volatility across equity and fixed income markets. However, sentiment went on to improve as these tariffs were later suspended, prompting global equities to recover, while fixed income markets shifted focus from potential interest rate cuts to worries over debt sustainability. At the same time, conflict in the Middle East continued to add a layer of geopolitical risk.
Growth was subsequently sluggish and inflation remained stubbornly sticky. Despite the global economy avoiding an outright recession, its future trajectory still remains fragile due to pending trade resolutions, questionable energy stability and, as yet, unclear policy responses from central banks.
Key Takeaways
Views by Investment Outcome
In Q2 2025, capital accumulation searches regained a top-of-the-leaderboard position, with 42.6% of views. Income, last quarter’s leader, came in second with 37%, down from 42.3% of views. Third was capital preservation, with 14.8% of views, down slightly from 15.4% last quarter. Finally, inflation protection searches ticked up to 5.6%, from 3.8% in the first three months of 2025.
Views by asset class
When it came to views per asset class in Q2 2025, equity was the standout winner, taking more than half the views, with 55.7% of searches. However, that is a drop from last quarter when it had 58.1% of views. Second place again was fixed income with 21.7% of searches, down slightly from 22.7% previously. Multi-asset searches regained some ground, having increased its portion of views from 17.8% to 20.9% of views this quarter. Alternatives came in fourth with 1.6%, a small uptick from Q1’s 1.2%. Property views had 0.2% of all searches this quarter, up from 0.1%.
Views by sector
Once again, IA Global was the most popular search when it came to views by sector, with 18.0%, up from 15.7%. In second place was IA UK All Companies, which also held the second spot last quarter. This quarter, it achieved 10.6% of views, up a little from 9.3%. In third was IA Sterling Strategic Bond, with 9.0% of views - up ever so slightly from 8.7% in Q1. Fourth place went to IA Targeted Absolute Return this quarter, which previously had been held by IA Mixed Investment 20-60% Shares.
Top views by fund house
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Havelock (6.5%)
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Jupiter Asset Management (5.0%)
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Schroders Investment Management (4.5%)
Top views by fund
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Havelock Global Select Fund (8.6%)
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Jupiter UK Dynamic Equity (2.0%)
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Capital Group New Perspective (11.9%)
Responsible Investing
Wellington Global Impact Bond returned to the top spot this quarter, up from its second position last quarter. It achieved 5.6% of all views. Liontrust Sustainable Future Managed Growth came in second with 3.5% of all views, whilst Baillie Gifford Positive Change came in third with 3.4%. The third spot had previously been held by Royal London Sustainable World Trust, which dropped to fourth spot.
Passive investing
It was all change when it came to passive fund searches this quarter. In first position was abrdn Short Dated GI Inflation-Linked bond fund, with 5.7% of views, while in second it was iShares Corporate Bond Index with 5.4%. In third was another abrdn fund: the abrdn Asia Pacific ex-Japan equity tracker fund, with 2.9% of views.
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