You will recall that we divide your money into two pots – one invested in Global Equities and the other invested in Global Bonds.
The purpose of this is that over time, the Global Equities provide you with your returns, and the Global Bonds soften the volatility, when the mix is right, you remain invested through good times and bad and achieve long term compound returns.
Whilst stock markets throughout the world have (perhaps understandably) fallen sharply significantly the Bond pot has been much more resilient and held its value extremely well, as expected.
The table below provides a proxy* for the performance of each portfolio for the 3-month period of 14th January to 14th April and for context I have also included figures for the past 12 months.
These are all well within normal investing market fluctuations, I expected far greater falls, but that just shows how you cannot time the market. We see the markets pricing in a recovery, and we would suggest anyone wishing to rebalance their portfolio now would be a suitable time. Please contact me by email if you’d like me to arrange this.
I have written an article about rebalancing if you wanted to understand this more, but in summary, we typically rebalance your portfolio annually, or during market extremes, good or bad. This keeps you more closely aligned to your agreed asset allocation and risk.
|Portfolio||Last 3 months (14/01/20 to 14/04/20)||Last 12 months (14/04/19 to 14/04/20)|
|FTSE All Share||-24.33%||-21.37%|
Source: Financial Express Analytics
*this is a proxy as it assumes that as at each start date each portfolio was exactly in line with its target asset mix. It is quoted net of the annual fund charge but does not include any Wrap charges or adviser fees.
This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed.
It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations.
Past performance is not indicative of future results and no representation is made that the stated results will be replicated. There is no guarantee strategies will be successful. Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. Diversification neither assures a profit nor guarantees against loss in a declining market.
Errors and omissions excepted.