Dublin, 5th March 2026
- During the quarter, global equities returned 3.2% (in Euro terms), as measured by the MSCI World Index, underperforming emerging market equities, which returned 4.8%. The MSCI Europe Index rose 6.3%.
- The European Central Bank (ECB) kept policy rates unchanged throughout Q4. In December, the ECB lifted its Euro area 2025 growth forecast from 1.2% to 1.4%. Resilient labour markets and gradually improving lending conditions helped support investor confidence.
- In the U.S. The Federal Reserve cut rates by 0.25% in October and again in December and updated its projections to stronger 2026 growth and lower inflation, signalling a move from precautionary easing to a more data dependent stance. Strong US labor market data, including higher-than-expected job openings, supports the view that markets may be overpricing the pace of future cuts.
- Last year, performance was shaped by post-trade shock policy support, AI-related growth, currency dynamics, and continued investor interest in diversification beyond US assets. Looking ahead, we expect fiscal stimulus, AI and wider technological innovations, and geopolitics to remain influential themes in 2026 and beyond. Over the next 12 months, we have a positive view on equities – strong earnings, policy support, and innovation continue to underpin a constructive investment environment.
Global equity markets ended the year on a positive note, with performance spread more evenly across regions. During Q4, Emerging Markets and Developed Markets such as Europe and Japan outperformed the U.S., marking a change after several years of U.S. leadership. Some of the factors driving this were a weaker U.S. dollar and the decision by some investors to steer away from U.S. technology stocks.
Please note: The value of your fund may go up as well as down. Past performance is not a reliable guide to future performance.
About LifeSight
LifeSight is WTW’s master trust and defined contribution single trust solution in Ireland. Master trust is a defined contribution multi-employer pension trust for employers looking to offer their employees a high-quality, lower-risk, market-competitive pension, without the governance burden.
Running a defined contribution pension scheme can be complex and costly for a lot of employers. LifeSight’s master trust looks after the day-to-day running of the pension scheme, whilst a professional trustee board looks after the interests of savers.
LifeSight offers access to a leading digitalised platform, including its innovative ageOmeter tool. Combined with our proven expertise in investments and communications, LifeSight is the complete package. LifeSight is also a well-established solution in the UK.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organisations sharpen their strategy, enhance organisational resilience, motivate their workforce and maximise performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
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