Holding Steady Into the New Year

2 February 2026

After a strong finish to 2025, global markets entered January with a more cautious tone. Investors navigated mixed economic signals, evolving rate expectations, and continued geopolitical uncertainty. While some asset classes experienced short-term volatility, the broader backdrop remains one of gradual normalization rather than systemic stress.

Against this environment, SqSave portfolios demonstrated resilience and discipline. Short-term fluctuations did not alter our strategic positioning, and our AI-driven framework continued to prioritize risk control, diversification, and data-led allocation decisions.

SqSave Investment Performance

January opened with uneven market performance across asset classes. While certain competitors saw gains driven by equity beta exposure, diversified portfolios globally experienced mild consolidation following strong prior-year returns.

Latest 1 Month Returns – Jan 2026

Key observations:

• January performance differences largely reflected short-term market beta effects, particularly benefiting pure equity allocations.

• Diversified portfolios globally generated modest positive returns in the initial month of 2026 after strong 2025 gains, a typical pattern during early-year repositioning.

• SqSave portfolios remained stable overall, despite intra-month equity markets volatility, reflecting disciplined allocation rather than short-term performance chasing.

Short periods of relative underperformance can occur when markets are driven by narrow rallies. However, these phases have historically been temporary, while diversified, risk-managed strategies tend to deliver stronger consistency over full market cycles.

Year to Date Positioning

Despite early‑year market fluctuations, all SqSave reference portfolios showed positive returns year to date:

Latest 2026 Year to Date (YTD) Returns

The early year figures highlight an important point: performance leadership often rotates month to month, but consistent positive positioning across portfolios signals underlying strategy strength rather than short‑term luck.

Investment Environment

• Interest Rates: Policy rates remain elevated globally, but markets continue to anticipate gradual easing later in the year.

• Inflation: Price pressures have moderated significantly from prior peaks, though core measures remain above central bank targets.

• Growth: Economic expansion is slowing but still positive across most developed markets.

• Equities: Leadership has been concentrated in a narrow set of sectors, contributing to short term dispersion in portfolio returns.

• Geopolitics: Ongoing geopolitical tensions continue to contribute to intermittent volatility, particularly in commodities and energy markets.

This environment reinforces the importance of disciplined portfolio construction rather than directional speculation.

Outlook

January’s market behaviour serves as a reminder that investing is not a straight line. Strong prior year gains are often followed by consolidation periods as markets digest valuations, policy expectations, and earnings outlooks.

SqSave’s advantage lies in its ability to adapt dynamically. Our AI engine continuously recalibrates portfolios based on evolving data, helping ensure that risk exposure remains aligned with prevailing conditions rather than market sentiment.

While short term market movements may vary, our long term philosophy remains unchanged: consistent outcomes are built through discipline, diversification, and data driven decisions.

Whatever the coming months bring, SqSave portfolios remain positioned to navigate changing market conditions with resilience.

Sincerely,
SqSave Investment Team

Disclaimer

The contents herein are intended for informational purposes only and do not constitute an offer to sell or the solicitation of any offer to buy or sell any securities to any person in any jurisdiction. No reliance should be placed on the information or opinions herein or accuracy or completeness, for any purpose whatsoever. No representation, warranty or undertaking, express or implied, is given as to the information or opinions herein or accuracy or completeness, and no liability is accepted as to the foregoing. Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Hypothetical or simulated performance is not indicative of future results. Unless specifically noted otherwise, all return examples provided in our websites and publications are based on hypothetical or simulated investing. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because hypothetical or simulated performance is not necessarily indicative of future results.

Footnotes:
^1. Portfolio returns are inclusive of ETF expense ratios and net of SqSave management fees. SqSave uses AI to design and manage diversified investment portfolios for each investor. Because SqSave is not an investment fund, there is no single return measure. Instead, every SqSave investor has his/her own investment performance as each investor is managed separately by our SqSave AI. As investors can withdraw and top-up any time, investment returns will be affected by individual investor decisions. Hence, SqSave uses reference portfolios which are actual portfolios managed on an ongoing basis, without any interference with withdrawals or top-ups, to measure investment performance.
^2. Performance numbers for peers are estimates.

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