December 2025 concluded with a varied performance across different asset classes, as global financial markets demonstrated a complex interplay of growth and stability. World Stocks emerged as the leading asset class, culminating the year with an impressive 32.60% annual increase, underpinned by a robust 2.57% surge in December alone. This strong finish solidifies its position as the top performer of 2025, reflecting significant investor confidence and favorable economic conditions.
Managed futures also concluded the year on a high note, extending its streak to five consecutive positive months with a 1.15% return in December. Despite this late-year rally, the asset class ended 2025 with a nearly flat annual performance of -0.19%. This trajectory suggests a period of recovery and stabilization following earlier fluctuations.
Hedge funds delivered a 0.54% gain in December, bringing their year-to-date return to 8.28%. While not as spectacular as global equities, this steady growth indicates a resilient strategy in navigating market complexities. Meanwhile, other asset classes such as U.S. real estate and commodities posted more modest annual returns of 3.42% and 5.92%, respectively, with bonds yielding 7.10%.
The varying performance metrics across these asset classes highlight the diverse opportunities and challenges present in the global financial landscape of 2025. Investors witnessed a clear leader in World Stocks, consistent recovery in managed futures, and stable returns from hedge funds, illustrating the importance of diversified portfolios in a dynamic market environment.