Tom Kiedrowski - Chairman

Chairman’s Report – For the year ending 31 March 2025

Governance & Oversight

Our Board of Trustees remains committed to prudent governance, ensuring that plan-holder funds are diligently managed and allocated to meet all future obligations.

Economic Context: Stock Market & UK Cost of Living

UK equities showed mixed performance in 2025 to date. The FTSE 100 has traded largely sideways after its 2024 gains of around 5–6%, with investor sentiment shaped by slower economic growth, ongoing geopolitical uncertainty, and caution around Bank of England policy. Global markets have continued to see volatility,  mainly due the USA Tarriff policy which had a detrimental impact but long-term fundamentals remain intact.

 The UK cost of living remains a pressing concern. Inflation has eased compared with 2022–23 but has proven “stickier” than expected, hovering around 3–3.5% in early 2025. Essential categories—food, housing, utilities, and transport—continue to put households under strain, and many families face affordability pressures that shape long-term financial decisions.

Funeral Price Inflation: 2025 Highlights

Funeral costs in the UK once again reached record levels in 2025:

• The average simple attended funeral now costs approximately £4,430, up 3.4% on 2024 (SunLife Cost of Dying Report 2025).
• Burials average £5,315 (+2.2%), cremations £4,140 (+4.0%), and direct cremations £1,690 (+5.8%).
• The total cost of dying—including funeral services, professional fees, and post-funeral expenses—rose to a new high of £9,925, up 1.3% year-on-year.
• Regional disparities persist: London remains the most expensive at £5,572, while Northern Ireland remains the most affordable at £3,506.

Investment Strategy & Performance

Our diversified investment approach continues to deliver resilience amid fluctuating markets. The portfolio is positioned across equities, bonds, and alternatives, ensuring both growth potential and downside protection.

 Despite volatility, performance has remained within expectations, and the Trust remains robustly overfunded (112%), fully able to meet all future funeral plan obligations. Despite the significant downturn of the markets on the date of this report was valued, the trust is still showing a significant funding margin proving our investment strategy is appropriate.

Why Funeral Plans Are a Strong Hedge

With funeral costs continuing to rise faster than headline inflation:

• Locking in today’s costs secures certainty for the future.
• Families are protected from the financial and emotional burden of unexpected price increases.
• Plans act as a reliable inflation hedge, especially where funeral cost growth outpaces general household inflation.

Outlook for 2025–26

• Inflation is forecast to remain in the 2.5–3.5% range, with services and utilities still driving cost pressures.
• Interest rates are expected to ease modestly in late 2025, though cuts are likely to be gradual to avoid reigniting inflation.
• Global equity markets are anticipated to deliver steady but unspectacular returns.
• Funeral cost inflation is projected to persist, underlining the importance of pre-paid planning for families across the UK.

Against this backdrop, the Golden Leaves Trust remains securely positioned—not only safeguarding liabilities but also delivering long-term stability and peace of mind for our beneficiaries.

Tom Kiedrowski

Chair

Golden Leaves Trust

September 2025