Important: Investment Update From Hansells Solicitors & Financial Advisers

Important: Investment Update 

The current Coronavirus Medical Pandemic has created significant market volatility.

This could not have been foreseen and all investment managers and companies are working hard to position portfolios favourably for their clients to deliver good risk adjusted medium to long term returns.

Market conditions, such as these, are rare but the levels of the falls this time have happened before and will happen again.  Markets recover and, over the longer term times like these, become a ‘bump’ along the way rather than having a fundamental impact on returns.

Portfolios and investments will reduce in value when we have sharp market falls and the level of the reduction in value will be commensurate with the amount of investment risk within the investment or portfolio.  The higher the risk the greater for potential movements down and up in the short term to pursue higher long term returns, the lower the risk the smaller the increases and decreases in value accepting a lower long term return.

In extreme market conditions like we have recently experienced with global stock markets falling by up to 35% portfolios will fall.  It would be reasonable to think the higher risk portfolios could fall by 20% or more and even a more cautious portfolio could fall by 10%.  As stated, markets and valuations will recover and, over the longer term, these extremes in markets will not adversely affect the return profile of investments.

Where clients hold managed portfolios of funds there is a high level of ongoing management at both fund and portfolio level to aim to benefit investors moving forward.  Remaining invested to benefit from positive days and a recovery is important.

You are able to access valuations for most investments via online access.  If you do not have this, and would like it, please contact your adviser who will arrange for access to be set up.  This will take some time  to ensure that your security is protected.  Therefore, and for all clients including those who are happy not to have online access, if you wish to have a valuation please contact your adviser.

Mark Giles Mark Giles

Financial Planning Executive Dip PFS

01603 275 830 markgiles@hansells.co.uk

David Blowers David Blowers

Financial Planning Executive Dip PFS

01603 275 833 davidblowers@hansells.co.uk

Matthew Hall Matthew Hall

Financial Planning Executive Dip PFS

01603 275 829 matthewhall@hansells.co.uk

Jason Mattless Jason Mattless

Financial Planning Executive Dip Cll Dip PFS

01603 275 835 jasonmattless@hansells.co.uk