Cybersecurity continues to be one of the most resilient and rewarding investment themes of 2025. The Amplify Cybersecurity ETF (HACK), which provides exposure to leading companies such as CrowdStrike, Palo Alto Networks, and Fortinet, has delivered a notable 31.3% return over the past 12 months, significantly outpacing the S&P 500’s modest 0.90% gain. This strong performance is underscored by the increasing frequency and impact of cyber threats making headlines. Just last month, major UK retailer Marks & Spencer was forced to stop taking online orders after experiencing a significant ransomware attack. Alongside exposing sensitive company data, the breach is expected to impact online operations until July, a disruption M&S expects will reduce annual profits by around £300m.

Globally, the cost of cybercrime was estimated to be $9.5tn last year, and is forecast to rise to $10.5tn in 2025. As attacks grow in sophistication and scale, so too does the urgency for stronger digital defences. The cybersecurity market, valued at approximately $194bn in 2024, is forecast to more than double in the next 8 years, reaching an estimated $563bn by 2032, which translates to a compound annual growth rate of 14.3%. In response, governments and regulators are stepping up. In the US, the SEC now requires public companies to disclose material cyber incidents and outline how they manage cyber risk. The Department of Defense also increased its cybersecurity budget by over 15% this year. In the UK, government guidance now urges company directors to better prepare for potential breaches, emphasising that cybersecurity should be managed as a core business risk, not just an IT issue.

For investors, the message is clear: cybersecurity is no longer optional. It has become a non-negotiable cost of doing business for companies and an essential privacy shield for individuals. High Street’s funds have already benefited from this structural trend, and are well-positioned to continue doing so in the future. Wealth Warriors has a 22.5% exposure to cybersecurity, the Fund’s largest allocation to a single theme. Our Global Balanced portfolio holds stakes in CrowdStrike and Microsoft, two of the leaders in threat detection and identity protection. As this sector continues to grow in both relevance and revenue, it remains a key long-term growth opportunity in our view.

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