2025 was another strong year for Stockspot investors.
Returns were driven by global shares and gold, while bonds again played their role as a stabiliser. The year reinforced why discipline and diversification matter most when markets are shaped by geopolitics and sticky inflation.
Stockspot portfolio performance
2025 again showed that long term investing is about discipline, not prediction. Staying diversified and sticking to the process mattered far more than reacting to headlines.
Gold, once overlooked and now in record demand, played a major role in lifting our portfolios to new highs. It reinforced the value of holding an allocation to this asset through every market cycle.
Our five Model Portfolios returned between 14.6% and 19.3% after fees over the year. Our Sustainable Portfolios returned between 8.5% and 9.1%.
The Topaz Income Portfolio returned 23.9% in 2025. The Topaz Inflation Portfolio, supported by higher exposure to gold, silver and gold miners, returned 50.4% over the year.
A 50% return in a single year is not normal and we would never suggest it is. But it does highlight how much difference sensible asset allocation and diversification can make. We believe a simple portfolio of low cost ETFs can deliver better long term outcomes for most investors than complex, actively managed portfolios of individual shares that typically carry higher costs and higher risk.
Global sharemarkets
Global sharemarkets delivered solid returns over the year.
U.S. large-cap shares again led the way. Performance was driven largely by large technology companies, supported by strong earnings and growing confidence in long term AI adoption. Despite periods of volatility early in the year around tariffs, our Global 100 ETF returned 17.9% for the year.
Emerging markets strengthened in the second half of the year and returned 23.6% over the 12 months. South Korea and China led the recovery. This marked the first sustained period of outperformance versus developed markets since 2017.
One of the dominant drivers across global portfolios was the continued rally in AI and semiconductor related companies. Increasing confidence in AI commercialisation drove a re acceleration in returns.
These companies now account for a very large share of global equity performance. This concentration also helps explain why many active managers underperformed over the period.
While market concentration has increased, this is not new. Similar periods have occurred before, including the Nifty 50 era of the 1960s and early 1970s. History shows concentration can persist longer than expected, which makes diversification and disciplined rebalancing even more important.
Australian shares
The Australian sharemarket delivered a return of 10.7% over the year.
Returns were supported by a resilient domestic economy. The labour market remained strong and company earnings held up better than expected, even as interest rate cuts were pushed further out.
Australian shares played a steady role in portfolios. They provided diversification and income and helped dampen volatility during periods of global market uncertainty.
Bonds
Bonds delivered a positive return of around 3% over the year, despite elevated volatility.
Yields rose early as markets repriced expectations for fewer rate cuts. As economic data softened in the second half of the year, yields declined and bond prices recovered.
Bonds continued to play an important role in portfolios. During periods of equity market weakness, bond allocations helped cushion volatility and provided balance against sharemarket risk.
Gold and portfolio impact
Gold was the standout performer in 2025.
The gold price rose by 54.3% and reached multiple all time highs. Prices peaked near US$4,550 per ounce in December. Performance was driven by persistent geopolitical tensions, renewed trade and tariff risks, a weaker U.S. dollar, record central bank buying and a sharp lift in investor demand.
Our long held allocation to gold meant clients benefited meaningfully. To manage risk and maintain portfolio balance, we trimmed gold exposure through disciplined rebalancing and reduced our allocation to 12.3% in October.
Why gold continues to matter
Several structural forces continue to support gold’s role in portfolios.
Central banks are buying gold at the fastest pace in decades as they diversify away from government bonds and the U.S. dollar. This appears to be a structural shift rather than a short term trade.
Global debt and fiscal deficits remain elevated. High debt levels limit how far interest rates can rise without destabilising economies. This increases the risk that inflation runs above target over time.
Currency debasement has also played a role. 2025 is on track to be the weakest year for the U.S. dollar since 1973. Gold cannot be printed and carries no credit risk, which reinforces its appeal.
Traditional asset correlations remain fragile. Shares and bonds have been more correlated than in the past, reducing the effectiveness of a simple 60/40 portfolio. Gold has continued to act as one of the few reliable diversifiers.
Investor behaviour is also shifting. After years of low allocations, institutions and retail investors are increasing exposure to gold. Some asset managers now suggest portfolios may evolve toward a 60/20/20 structure, with gold playing a larger strategic role. This echoes the 1970s, when persistent inflation and volatility made gold a core holding.
These forces suggest gold is likely to remain a strategic asset for many years.
Gold is volatile and returns will not be smooth. Disciplined rebalancing remains critical to capturing its benefits while managing risk.
As 2025 showed once again, markets reward patience, not prediction. Boring and diversified portfolios tend to work best when markets and geopolitics are anything but boring.
