Adviser-to-client template: Preparing for 2026

For financial advisers to use with clients. 

This document is intended to support your service proposition to clients. It is produced by our investment writers with a deliberately light tone and structure. However, these are guidance paragraphs only. It is not guaranteed to meet the expectations of regulators or your internal compliance requirements. If you wish to remove or amend any wording, you are free to do so. However, please bear in mind that you are ultimately responsible for the accuracy and relevance of your communications to clients. 

Dear Client, 

I know we say it every year, but 2025 went quickly! I hope you were able to take some time off and spend it with your loved ones before we get started in 2026. Last year was often tumultuous in markets, but as a result, it also proved many time-tested investing principles: to keep a cool head, to stay invested, and to always concentrate on an investment’s value over price. Our investment manager, Morningstar, will continue using this playbook, staying focused on the building blocks of investing.    

So far, 2026 has started similarly to 2025, with the U.S. government delivering some policy decisions that have shocked markets. You’ve likely heard of many of these, including direct interventions in the defence, finance, homebuilding and mortgage industries, as well as orchestrating a regime change in Venezuela. That, plus outright attacks on Jerome Powelll, the chairman of the U.S. Federal Reserve, could all go some way to erode investor sentiment. That said, by sticking to a robust investment process and adhering to behavioural investing principles, investors can expect to navigate through this period, and periods of similar uncertainty, with confidence.     

AI was also a big player in 2025, and we expect that to continue as 2026 unfolds. Morningstar’s investment team have considered how it will impact the broader economy, and expect that increased AI spending will go some way to dampening inflation, as more widespread use increases productivity and reduces costs. It’s also interesting to note parallels with the internet commerce boom of the late 1990s, which saw strong results in bonds.  

And though we can’t predict exactly what curveballs 2026 will send our way, we do know that volatility is a feature, not a bug, of investing. As always, the best way to prepare is to stick with the fundamentals and tune out the noise. And, with Morningstar’s proven process, your investments are in good hands. 

To that end, it would be remiss of me not to mention that Morningstar Investment Management took out two awards at the Financial Newswire Fund Manager of the Year Awards last year, and were highly commended for two more. It’s a pleasure to work with them, and if you have any questions about your portfolios, I’d be happy to answer them. For more details, refer to this article.  

As the new year starts, it’s always a great time to talk about or revise your financial plan. Please feel free to reach out any time and we’ll get something on the calendar. I look forward to speaking soon.  

Regards,  

Adviser 

Important Information 

As noted previously, this document is intended to support your service proposition to clients and the commentary does not constitute investment, legal, tax or other advice and is supplied for information purposes only. Past performance is not a guide to future returns. The value of investments may go down as well as up and an investor may not get back the amount invested. The information, data, analyses, and opinions presented herein are provided as of the date written and are subject to change without notice. Every effort has been made to ensure the accuracy of the information provided, but Morningstar makes no warranty, express or implied regarding such information. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or losses resulting from, or related to, the information, data, analyses or opinions or their use