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As we move beyond the third quarter of 2025, we are pleased to share an update on how our strategies have performed for clients. While each portfolio is tailored to individual objectives and circumstances, we monitor a representative set of ‘core portfolio’ holdings and compare their progress against the ARC Private Client Indices — a widely recognised benchmark that reflects the combined performance of leading UK investment managers. With the exception of the Growth strategy, all the others include at least 40% held in fixed interest bonds and alternative investments and so cannot be compared to any one equity index, hence the use of ARC.

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Performance taken from 01/01/2025-30/09/2025

EXE Growth Strategy: +11.96% vs ARC Equity Risk Index +7.25%

EXE Income & Growth Strategy: + 10.30% vs Bank Base Rate +3.24% and CPI +2.73%*

EXE Balanced Strategy: +7.27% vs ARC Balanced Index +6.11%

EXE Conservative Strategy: +6.59% vs ARC Cautious Index +4.89%

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*(there is no comparable ARC index for income portfolios, CPI and Base Rate have been used for this strategy as the primary aim is creating an inflation proofed income)

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From a pure equity only perspective our Growth Strategy has performed well relative to the MSCI World Index which rose +9.25%. Index tracking funds continue to play a valuable role in diversified portfolios, offering an efficient way to capture broad market performance. At EXE Capital, we use them selectively, through for example the Fidelity World Index Fund alongside actively managed strategies designed to add value beyond benchmark returns. Whilst index funds are known to beat most fund managers, our role is to find those small numbers who do beat their benchmarks, and we do. This combination allows us to manage portfolio risk effectively, particularly by limiting exposure to areas of the market that have become heavily concentrated.

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One such area is the group of large US technology companies known as the Magnificent 7 which together make up nearly 40% of the US equity market. Whilst these businesses have driven much of the market’s recent strength, we advise on a balanced approach that looks beyond a narrow set of dominant names.

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Recent years have been shaped by a long period of low interest rates and, more recently, optimism surrounding artificial intelligence. History, however, reminds us that markets can go through extended periods of muted returns. One such was the lost decade following the tech crash of 2000. Between January 2000 and December 2010, the S&P 500 delivered just +3.43% in sterling terms, while the MSCI World Index returned +21.95% — a decade that tested investors’ patience and certainly didn’t do much for passive tracker funds.

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This was a period that showed the benefits of active managers and stock selection. Many of the managers we support today delivered materially stronger results in those first 10 years of the Century.

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• AVI Global (which avoids concentrated U.S. exposure): +179%

• Fidelity Special Values: +130%

• Scottish Mortgage Investment Trust: +115%

• Rathbones Global Opportunities: +87%

• Law Debenture (UK-focused): +100%

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They have all outperformed the MSCI and S&P 500 indices over the last 25 years to the end of September 2025, even when you take into account the very low-interest rate environment following the Global Financial Crisis when it was hard to outperform the index and Law Debenture only invests in UK listed companies!  

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All client’s priorities are unique, and strategies are designed accordingly. For some, wealth preservation and stability remain the key objectives; for others, a higher allocation to growth assets is appropriate. We continue to believe that combining passive and active strategies offers a pragmatic route to achieving long-term returns with an appropriate balance of risk and reward.

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All performance figures are taken from FE Analytics 15/10/2025

EXE performance period 01/01/2025-30/09/2025

Individual fund performance periods of 01/01/2000-31/12/2010 or 01/01/2000-30/09/2025 as described

All EXE performance figures are net of EXE investment management fee and underlying fund manager fees

All individual fund performance figures are net of the fund manager fee

Comments from EXE Capital Management.

The views are those of the author only. The above does not constitute a recommendation to buy specific funds or assets and advice should be sought from your financial advisor as to the appropriateness of this in your portfolio. The value of investments can fall as well as rise. Past performance is no guarantee of future returns.

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