DC Provider Market Snapshot Q4 2024

In this Q4 update, we share a snapshot of the DC market.

• Q4 2024 saw mixed returns across asset classes as market volatility continued, influenced by a mix of economic data and geopolitical tensions.
• Global equities delivered strong returns with US equities reaching record highs in November following Presidents Trump’s victory and expectations of lower taxes and reduced regulation. Emerging Markets were negatively impacted over the quarter by a stronger dollar and higher US Treasury yields.
• High yield bonds outperformed their investment grade counterparts, meanwhile UK investment grade bonds delivered a modest negative return over Q4, hampered by expectations of a looser fiscal outlook for the UK.
• UK gilt yields rose over Q4 in response to the planned increase in Government borrowing, which was announced in Labour’s October budget. concerns remain about the UK economic outlook, with the prospect of higher-for longer inflation.