The speed at which the Coronavirus pandemic has changed the way the world operates has been staggering. We want to reassure you that we are here for you to answer any questions or concerns you may have about how Coronavirus is affecting your pensions, investments and retirement plans.
Please note: We are still contactable via the usual channels, should you need to talk to us.
The Reeves Investment Team are meeting daily to discuss the performance of each fund and every portfolio and how the current economic climate is impacting our clients. We have had a strategy of caution and defensive portfolios, fearful of a fall for several years.
We are monitoring the levels of the market to decide on any prime buying or selling opportunities. We believe that the markets falling have presented a positive buying opportunity recently for all investors, to move slightly more into the market and take advantage of what will be a market recovery. We cannot say how much further the markets will fall, nor when they will fully recover, but we do believe they will recover.
We remain defensively positioned though and hold large portions of cash and bonds to add protection to capital.
The Reeves Investment Team has put their plan into process and for all Tactical clients, with increased exposure to equities with the plan to benefit once the markets do eventually recover.
We believe it is better to move into the markets in phases, so we moved in initially after the markets had fallen a certain amount. If the markets continue
d to fall, we can buy more at a lower price. Alternatively, if the markets then rise again, we would benefit more from the already increased equity exposure. We believe this is the best strategy in these very uncertain times, as we do not know if we are at the bottom of this market fall yet, nor can we predict when the markets will turn.
Reeves has actually been more cautious than normal for several years now, creating the portfolios with a higher weighting to cash, bonds and property than the benchmark would suggest, our strategy has delivered us a steady rate of return whilst protecting our client’s money from the worst of market falls. Reeves has been wary of a drastic fall in the market like this for several years and so our strategy has been one of caution.
It is easy to say in hindsight that selling a portfolio into cash pre-coronavirus would have been a beneficial move – however, as we did not know this was going to happen for sure we just remained overly cautious and overly defensive. ‘Time in the market is better than timing the market’. We must remember in times such as these that this is a 30- year investment and history has shown that staying invested has always been beneficial over the long term.
Reeves has a skeleton staff in the office who are tending to post etc… the remainder of our staff are working from home and are available to contact as normal!
This will continue as normal; staff are in the office to collect and action any post. Time frames for these transactions may be extended, not least as the providers will be facing their own staffing and system challenges – please be aware of this.
As you would expect, Reeves has a plan in place. We have been more conservative in our decision making in the past few years, and as such, our portfolios have been set-up where we have been overweight in cash and safer assets such as bonds for some time. Because of this our portfolios haven’t dropped as significantly when we compare ourselves to the FTSE 100, other key indices, and potentially other funds and professional advisers.
As you may know, Reeves has started to execute the plan and we have made our first batch of changes to capitalise on ‘buying cheap’ for Tactical clients. This is to capitalise on assets that have dropped significantly; we have confidence in these holdings and believe they will perform over the long term. Now is an opportune time to purchase, it is the best buying opportunity we have had in recent history.
If markets continue to fall, or, if we see opportunity for you to benefit, we will send you a new proposal. The investment team are meeting daily and making calls as to what we do next for each client bank whether they are – Adventurous / Balanced / Cautious, or, Retired, 5 years to retiring or 20 years to retiring!
Your income will not be affected and will continue as normal.
Your provider has a reserve in place to continue payments out to clients (such as retirement incomes) for a set period- of- time whilst they make the necessary arrangements for client’s money to be moved to other providers. If this were to happen, Reeves would be taking the majority of the work away from you and we would recommend a new pension arrangement that we can provide a good service to you on, complete the paperwork and get the transaction sorted out.
The Financial Services Compensation Scheme (FSCS) covers business conducted by firms authorised by the UK regulators, FCA & PRA. The actual level of compensation you will receive will depend on the basis of your claim. The FSCS only pays compensation for financial loss. Compensation limits are per person and per firm.
- Long-term insurance (e.g. workplace pensions, personal pensions, annuities, endowments and investment bonds) – 100% of the claim with no upper limit for the claim amount
- Investments (e.g. Unit Trusts, Open Ended Investment Companies and Stocks & Shares ISAs) – 100% but limited to £85,000 per person, per firm in default
- Investment & Home finance advice (e.g. investment planning and mortgage advice) – 100% but limited to £85,000 per person, per firm in default
- Deposits – The FSCS would pay compensation up to the limit of £85,000 per person, preauthorised deposit Group (e.g. bank, building society and credit unions)
Reeves Independent has no plans of going anywhere!
However, in the event of this happening, your investments will remain with your Reeves managed portfolio – however, would no longer be managed by Reeves. Any regular transactions (such as income payments) would not change. The investments would not be changed either and the pot would continue to exist exactly as it was on the day that Reeves ceased to be.