| Hi to you and yours
Update – Investment portfolio results
Let’s set the scene The Global pandemic has created havoc with the Global economy where the outcome and bumpy ride we travel on is yet to be concluded. There have been winners and (sadly) losers in this crisis, with very successful businesses prior to the pandemic failing or struggling to survive. Businesses that carry out activity without human contact – electronically – are generally winners. Travel, leisure, hospitality and anything impacted by Covid and demand reduction (such as metals) are unfortunately fighting for survival. Governmental Intervention We know without intervention and stimulus the economy as we know it would have collapsed. Interest Rates Interest Rates are effectively negative, when inflation is considered. This is before considering the cost of banking and any negative rate that the BoE may use as a policy tool. We know that interest rates will remain at this present level for years to come! Deploying capital in a ‘suitable’ way for the long term is therefore more essential than ever before! We see crazy examples of disproportionate ‘cash’ holding when considered against an investor’s needs. Most investors ‘live’ from income (either from employment or retirement). Our clients are in the demographic of ‘at or near’ retirement where, in the main, where capital is concentrated, therefore not impacted by employment concerns. Holding 10 x more cash than is required is unlikely to be the best value deployment of capital over the longer term! It is impossible to make short term calls on investment markets – but longer term, the markets are set up to deliver for risk assets. (Please note – this statement is not to be regarded as ‘Advice’ as advice is always personal to an investor’s needs). Investment Balance
Investment balance and quality asset selection is essential. Each investor has their own specific needs so building a solution to meet these needs, at low cost – delivering over the medium to longer term, adds huge value. In every investment portfolio that we have reviewed – our advice solutions add substantial value to investors. The data confirms the facts. Covid has, if anything, increased our outperformance, so for your friends, family and loved ones, if you wish to add value and assist them, you may wish to direct them to our services, where we are able to provide a transparent overview of their investments and explain in simple terms, the costs and outcomes they have gathered, comparing to our results. We hear a lot of ‘spin’ from poorly performing advisers and fund groups – like; “We’re all in the same boat at this dreadful time of crisis”. This is nonsense – our boat is water tight, many that we see are leaky at best and some are sinking! Doing nothing is not an option! I have explained to hundreds of our clients over recent months that deploying capital when the markets pull back hard – for the medium to longer term – was and remains essential. We hope you have got the message….. Now for the important facts Please note that the valuations are a snapshot in time and unit prices fall as well as rise and we must say “Past performance is not a guide or guarantee of future performance”. Independent Financial Advice on an ongoing basis is essential and we can demonstrate why – If you have any questions in respect of your personal position, simply make contact. We will do all we can to assist and support you. Risk Model 2 Portfolio volatility 4.15 So, the benchmark is positioned in a riskier way (Please note that our Risk Model 2 should be cautiously positioned – by definition!)
Risk Model 3 Portfolio volatility 7.40
Risk Model 4 Portfolio volatility 8.32
Risk Model 5 Portfolio volatility 8.40
Risk Model 6 Portfolio volatility 9.25
Risk Model 7 Portfolio volatility 9.65
Risk Model 8 Portfolio volatility 10.00
Risk Model 9 Portfolio volatility 10.70
Portfolio volatility 15.00
You will see, when reading the data, that our portfolios are substantially ahead of the relative benchmarks and managed at lower cost. Against peers, we are further ahead so we clearly look forward to providing investors with great news where they are investment clients of Best Price Financial Services. Investing is all about managing risk – delivering suitable investment outcomes. We clearly continually demonstrate this. Investors will know that the main UK Index is off from 7300 (ish) prior to Covid lockdown to currently just below 5800, so around 22% lower over this point. How have we achieved such strong results? As I have explained to our investment clients, we have selected the best assets in an agnostic/independent way, with exposure to the US tech, healthcare and bio tech and future proof sectors. We continue to review asset constructions with our clients and will report to our clients regularly. If consultancy advice is required, simply get in touch. Very Best Wishes Richard and the Best Price FS Team If you want to talk to me abut Investments, simply fill in the form below and we will get in touch with you. We have limited spaces for our Investing services and it may not be for everyone, but we can certainly chat with you to better understand your needs and go from there. |
