The cost of living crisis and your investments
At Reeves Independent, we understand you may be concerned about your investments in light of the current economic climate.
We want to offer you an insight into what our Investment Committee are doing at this time.
We have made a number of key changes in response to the outbreak of the Russia-Ukraine conflict, but our current stance in light of market volatility is the same now as it was during the Covid-19 pandemic - stay calm and do not panic.
As investors, we learned the importance of protecting your wealth in the wake of the Covid-19 crash in March 2020.
Whilst we are sticking to our disciplined investment approach, it is very difficult to form a coherent view at the present time, given the rapid events unfolding and sharply increased Bond and Equity market volatility.
In terms of moving to more defensive assets, our Investment Team have been monitoring the markets to benefit our portfolios and have introduced real assets and infrastructure over the last year. This is to allow your portfolio to receive inflation-linked cash flows, as a hedge against the rising inflation and capital protection in a poor economic environment.
We have been consistent in our approach to investing this year, using a balance of assets to maximise the diversification and limit the volatility.
We have kept higher levels of property in our portfolios than the benchmark would indicate. This has been one of the best performing asset classes this year and has provided your portfolio with a positive income stream.
We are monitoring the price movements in the portfolios and resisting any urge to panic. History shows how markets can turn quickly.
Our market outlook
Over the decades, panicking and disinvesting after significant market decreases can be as damaging to long term wealth prospects as piling in just because markets have risen a lot.
We want to reassure you that your portfolios have a high level of diversification across regions, assets and managers.
We will always notify you of any changes in the first instance and any changes we make, will be carefully managed due to the likely persistent volatility. Our investment philosophy remains unchanged. We do not take unnecessary risks by predicting outcomes.
How can Reeves help?
This is understandably a worrisome time. Our Investment Team dedicate their time to ensuring that you can gain an understanding of the markets, through our frequent newsletters and communications. The team are also available to answer any questions you have via email, over the phone or via Zoom.
If you have any concerns or queries, please do not hesitate to get in touch with your Advice Team.
Pensions are a long term commitment, you may not be able to access your pension funds until the age of 55 (currently), investments can go down as well as up and you might not get back your initial capital. Pension and tax legislation does and can change in the future which could impact your pension.
The value of your investment and any income from it could fall or rise, and you may not get ack the full amount you invest.
Past performance is not a reliable indicator of future results. We always recommend you talk to a qualified financial adviser before making any investment decisions.