When it comes to building wealth, where you invest your money matters. Over the past year, global markets have delivered mixed performances, and for investors in Ireland and the UK, comparing domestic returns to international benchmarks is more relevant than ever. In this post, we take a look at comparing investment returns of four key investment sources have performed over the last 12 months: the S&P 500, Irish pension funds, the UK stock exchange (FTSE 100) and Southern Cross Investments.
📈 S&P 500: A Strong Comeback Followed by a Correction
After a volatile 2022, the S&P 500 posted a solid recovery throughout 2023 and into early 2024. As of March 2025, the index has had a correction with the impact of America’s tariffs coming into play and is up 8.04% year-over-year, driven largely by strong tech performance (particularly in AI-related stocks) prior to a change in sentiment at the start of 2025.
Key drivers:
- Big Tech has seen a correction after strong growth.
- Inflation cooled, but uncertainty around tariffs has caused a sentiment to drop.
- Fed rate hikes paused, with hints at two potential cuts later in 2025.
For Irish and UK investors with exposure to US markets (through ETFs or global pension portfolios), this has caused uncertainty in investments that are particularly exposed to tariffs.
🇮🇪 Irish Pension Funds: Modest but Stable Gains
Irish pension funds delivered more modest returns, with an average annual return of around 8–10% depending on the fund and asset allocation. Multi-asset strategies—typically blending equities, bonds, property, and alternatives—meant that Irish pensions didn’t fully capture the highs of the US stock market but also avoided sharp drawdowns.
Key factors:
- Diversified portfolios limited upside.
- European equities and bonds underperformed compared to US equities.
- Irish commercial property saw flat to negative returns.
For long-term savers, these results are solid, and reflect a balanced approach to risk in volatile times.
🇬🇧 UK Stock Exchange (FTSE 100): A Laggard in Global Terms
The UK stock market has bounced back at the start of 2025 to keep pace with global benchmarks, and as at mid-March 2025 even having higher investment returns than the S&P500. Over the last year, the FTSE 100 delivered a return of 9.77%.
What held it back:
- Heavy exposure to energy, financials, and consumer staples, which saw growth.
- Growth of UK economic sentiment due to change of leadership.
- Limited representation of high-growth tech sectors and continued uncertainty coupled with possible stagflation.
While the FTSE does offer attractive dividend yields (9.77%), capital growth has lagged prior to 2025—raising questions for investors with UK-heavy portfolios.
Southern Cross Investments: Steady Returns
Southern Cross Investments delivers an annual return of 9.8%. As our investment is distributed across a large number of asset backed loans with set interest rates our returns are stable year on year.
What held it back:
- Provides geographic and asset class diversification.
- Backed by assets in a strong real estate market.
- $150M AUD under investment with close to a decade of experience.
While Southern Cross Investments offers an attractive yield (9.8%) it does work as a great addition to a diversified portfolio rather than a complete investment plan.
💡 So, What Does This Mean for Investors?
Here’s a quick summary:
| Investment Source | 12-Month Return (as at 21st March 2025) | Notes |
|---|---|---|
| S&P 500 | +8.04% | Correction, especially in tech |
| Irish Pension Funds | +8–10% | Balanced, diversified, stable |
| UK Stock Exchange (FTSE 100) | +9.77% | Growth, income-focused |
| Southern Cross Investments | +9.8% | Steady returns annually |
Relying solely on one investment vehicle creates risk, and diversification—like that found in portfolios that contain multiple investments—offers long-term resilience.
If you’re investing through a pension or considering rebalancing your portfolio, it may be worth checking your exposure to global markets, especially the US. Meanwhile, investors with heavy UK exposure might want to look at more growth-oriented sectors or consider international diversification.
Final Thoughts
Past performance doesn’t guarantee future results—but understanding how different markets behave helps you make smarter decisions. The last year has shown the importance of global exposure and the benefits of staying invested during volatility. Whether you’re building a pension, managing personal investments, or just keeping an eye on the markets, keeping a global perspective has never been more important.