Proposed Changes to Your Portfolio:

In Brief...

Since last month’s update, global markets have enjoyed a more stable few weeks, making up some of the ground lost in previous months. Although we are still in the middle of a crisis like no other, governments fiscal response and the proposed relaxing of many lockdowns across Europe has helped to calm investors nerves and spark a decent improvement in market sentiment in the last few weeks. The prolonged disruption to economic activity is however expected to subdue the positive feeling somewhat, and the recovery is expected to be a gradual rise as opposed to a sharp return back to the position at the start of the year.

Although by no means did we expect a global event of this magnitude, Reeves has been overly cautious for years, wary of a recession in some form. This left us in a fairly strong position relative to the rest of the market and as such we have missed out on some of the larger losses seen by other IFA’s and indices such as the FTSE 100. Although we have chopped and changed the Tactical portfolios to benefit from the growth in markets, we have remained overweight in cash and bonds compared with the benchmark.

Although like most of the nation we have been forced into working from home, the Investment team’s communication has not been hindered as Reeves had the infrastructure and technology in place, allowing a smooth transition into a different way of working. This has allowed us to continue to stay in contact with fund managers, albeit on a more modest scale and only where we see necessary, gaining an insight into the way different funds have dealt with the pandemic so far.

Following on from last month’s newsletter, the Reeves confidence barometer is currently at 35%. We are confident the markets will recover in the future, however we are wary of further declines before this occurs. The current position can be summed up quite simply: investors are caught between the fear of the unknown and the fear of missing out. With the economic impact of the virus likely to last well into the end of the year and talk of a global and UK recession, we are reluctant to get too caught up in the improved market mood and remain relatively cautious about the medium term.


May 2020 Aims 

Market round-up 

Portfolio Key Details: 

Individual Fund Performance: 

  • Top 3 Performers:
  • Bottom 3 performers 

Name of fund

Since January 2020

Since Last Report (31/03/20-27/04/2020)  

Empiric Student Property

-35.06%

-5.29%

Polar Capital Global Insurance

9.17%

-2.44%

BMO UK Property

4.15%

-2.10%

This based on our understandings as of April 27th 2020. Data sourced from FE analytics.

Reeves Independent Confidence Meter: 

35%

The above meter represents our confidence on the short term prospects of the global equity markets in the upcoming months. Please read our Market Outlook Reports on a monthly basis for more information. 


The information in this blog or any response to comments should not be regarded as final advice. Please remember that the value of your investment can go down as well as up, and may be worth less than you paid in. Information is based on our understanding at April 2020.

Data provided by FE. Care has been taken to ensure that the information is correct but Reeves Independent neither warrants,
represents nor guarantees the contents of the information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Financial Express Limited Registration number: 2405213. Website:www.financialexpress.net

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