MyFolio Q3 2025 review: from insights to strategic shifts
The key points from our latest quarterly webinar.
Duration: 3 Mins
Date: 05 Nov 2025
Risk warning
The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.
Our live quarterly webinars offer timely portfolio updates and market views. We believe they’re vital for keeping you informed and confident in your client conversations.
In our latest virtual event, Aberdeen’s Chief Economist Paul Diggle and Justin Jones, Head of Managed & Model Solutions, shared updates on global macro trends, positioning, and performance. In case you missed the webinar, or if you’re looking for a reminder of the key points, this article will provide you with a quick summary.
Mixed macro signals and strategic implications
USA
Paul highlighted diverging trends in the US economy. While payroll growth and migration are slowing, GDP (gross domestic product) remains strong - driven by productivity gains, possibly linked to artificial intelligence (AI) adoption, and resilient consumer spending.
Concerns around tariffs have eased.
Paul said earlier concerns around tariffs have eased. Although the US weighted average tariff rate spiked to 16%1, exemptions and diplomatic developments have softened the inflationary impact. Core PCE (personal consumption expenditures) inflation is expected to exceed 3.5%1 by year-end, but expectations remain anchored.
The US Federal Reserve is forecast to cut rates twice before year-end and up to three times in 2026. Despite concerns about politicisation, the Fed is expected to maintain credibility, albeit with a dovish tilt under Trump’s influence.
UK
In the UK, a £30 billion budget shortfall looms, driven by downgraded growth forecasts and higher gilt yields. Tax increases are expected, including frozen income tax thresholds and potential pension tax relief reforms. The Bank of England is forecast to cut rates in December and three more times in 2026.
Global
Paul noted the advent of Japan’s new Prime Minister Sanae Takaichi signals a return to ‘Abenomics’-style reflation. Corporate reforms and moderate rate hikes may support Japanese assets.
France faces rising deficits and political instability, with debt markets treating it more like a peripheral Eurozone economy.
The Russia-Ukraine conflict is likely to persist into 2026, with risks of escalation.
Performance and modernisation
Justin talked through the latest update on the portfolios, highlighting that in the third quarter we saw broadly strong relative performance across the MyFolio ranges. To see full performance details, visit our Lookthrough reports page or access fund factsheets via our fund centre.
The MyFolio Core strategy, now a ‘go-anywhere’ hybrid model, has shown a notable turnaround since mandate changes were implemented in July. The merger of MyFolio Market into MyFolio Index has boosted AUM (assets under management) to £9.2 billion.1
Our ESG (environmental, social and governance) ranges are now fully compliant with the FCA’s Sustainability Disclosure Requirements (SDR), with MyFolio ESG Enhanced Index proving popular and surpassing £260 million in AUM.1
Asset allocation and tactical positioning
Aberdeen’s disciplined investment process continues to deliver consistent risk-return outcomes, guided by long-term strategic asset allocation and regular re-optimisation.
Our capital markets team has revised its 10-year expected returns influencing current asset allocation:
- Fixed income remains attractive, especially local currency debt.
- Within growth assets, Asia, emerging markets (EM) and Japan are favoured, while US equities face downgraded expectations.
- In respect of tactical asset allocation (TAA), where it is utilised, MyFolio portfolios hold a moderate overweight to growth assets, expressed through positions in US, Asia, and EM equities. This is balanced by an underweight in inflation-linked bonds and a modest overweight in nominal government debt.
Listed infrastructure: a strategic addition
Listed infrastructure has been introduced across all MyFolio ranges. We believe the asset class offers:
- Stable cash flows
- Inflation protection
Low correlation with other assets
- Urbanisation: Urban populations are projected to grow by 50% over 30 years, increasing infrastructure demand.2
- Energy transition: AI and electric vehicles are driving electricity demand, requiring major investment in energy generation.
- Digital acceleration: Technologies like autonomous vehicles and 6G are fuelling exponential data consumption.
When assessing the addition of any new funds within the portfolios, the MyFolio fund selection team use the proprietary ‘LADDR’ framework - Liquidity, Accessibility, Distinctiveness, Diversification, and Risk Premium. This process supports the inclusion of listed infrastructure across MyFolio funds.
Final thoughts…
The MyFolio range of funds is designed to help you match clients with portfolios that suit their risk appetites and evolving needs. Thanks to robust insight and disciplined portfolio management, our cost-effective solution makes it easy for you to support their long-term financial goals.
To revisit our Q3 2025 discussion, access the webinar recording or contact us for more information.
- Source: Aberdeen, as at 22 October 2025
- Source: RICS The planet of cities, Nov 2024
