Our overall result is a loss after tax of £469.6 million (£213.3 million profit in 2024), which represents a loss of 4.8 per cent on net assets this year (2.5 per cent profit in 2024).
We track portfolio return in US dollars, as most investments are denominated in this currency. That means our financial results can be significantly affected by changes in the sterling-to-US-dollar exchange rate. That was the case in 2025, whereby sterling depreciated during the year, causing a differential in sterling and US-dollar results. In US-dollar terms, our portfolio generated a return of $108.6 million ($299.1 million in 2024), representing a gain of 1.2 per cent (3.3 per cent gain in 2024). In sterling terms, the portfolio generated a loss of £273.2 million (£317.3 million gain in 2024), which represents a portfolio loss of 3.6 per cent (4.3 per cent gain in 2024).
Tracking our portfolio performance
We are a long-term investor, so it is important to look across several years for trends, recognising that, in any isolated year, market conditions or events may cause exceptional performance. Our financial performance measure, as defined in our 2022–26 Strategy and 2022–26 Investment Policy, articulates our appetite for financial risk and return, as well as ensuring the proper stewardship of taxpayer-owned assets. Our performance is assessed based on a minimum return of 2 per cent across our total portfolio, measured on a rolling, seven-year basis. This measure is consistent with our mandate to invest to meet the needs of people and the planet in the markets we serve, while ensuring our own long-term financial sustainability.
We remain ahead of this financial return hurdle, and the seven-year weighted average annual portfolio return is currently 3.8 per cent, as shown in the chart below.
