Take Back Control

​For a lot of us, when financial or economic news comes on the radio or TV, it’s an invitation to go and put the kettle on.

These reports of market movements and forecasts often seem to belong to someone else’s  world. We tell ourselves that, not only don’t we really understand them, we don’t need to, because they have no bearing on our day-to-day lives.

In fact, if you’re saving for retirement, or living off retirement income, these news reports and the events behind them are highly relevant to you. What’s more: if you start to pay attention to these market events and react to them, you have it in your power to potentially enhance your retirement plans. As a Reeves client we give you the opportunity to do just that, while benefiting from our expertise and guidance.

Clients who invest in one of our Tactical Portfolios, receive frequent communications from us advising of changes in market conditions, opportunities they might want to take and a recommended course of action. These clients tend to be those who are nearing retirement and want to take advantage of short-term opportunities and the Reeves investment team daily monitors the markets for these. We might, for instance, advise a client to buy into a recovery equity fund when the market has dropped significantly in order to take advantage of any potential to outperform in a subsequent market upturn

Our Core Portfolios, on the other hand, suit clients who are generally further away from retirement and not overly interested in short term market volatility and movements. However, we monitor these portfolios as regularly as the tactical and manage them throughout the year with a long-term objective in mind. They are carefully structured so that they don’t need frequent adjustment. The client is still kept informed and consulted but fewer decisions are called for on their part than with a Tactical Portfolio.

What Reeves doesn’t offer is a portfolio for an entirely passive client, one who wants to sit in a tracker fund or a passive portfolio which follow the market under all circumstances and is never changed. Such portfolios aren’t designed to react to any short-term volatility and will never be changed for any alterations in long term goals. If the market were to fall dramatically – as in March - a passive client would have to blindly follow it.

Here’s a couple of Reeves client illustrative examples.

Robert Hunt, 61, hopes to retire in a couple of years. He became a client four years ago, when Reeves consolidated four different pension schemes he had collected over the years into a Tactical portfolio. He opted for this because he’s interested in finance and investments and follows the markets. He’s also keen to take advantage of any opportunities in the market to maximise his savings.

Another client, on the other hand, Jessica Forbes, 55, is a successful businesswoman who owns her own company. She’s familiar with finance but she’s also extremely busy running her business - too busy to devote attention to her retirement fund. She’s happy to save through a Core Portfolio at this point, but plans to shift to a Tactical portfolio in a few years’ time as she nears retirement and can hand over some of the running of her business to the management team she’s grooming.

When the coronavirus crisis hit the markets in March, Reeves’ Tactical Portfolios were overweight in cash as we had already taken a defensive position. We took the opportunity to use this cash to buy UK and global equities, which were cheap due to the market fall. In fact, we were picking up equity at almost a third cheaper. We did this at a much larger rate in our Adventurous Tactical Portfolios and since then these have grown by 26.5% since the market bottomed. Our Core annual change was scheduled for April and we switched our long-term view for our Core Portfolios and made a similar change for these and our Core Portfolios have since done over 23%.

So, it pays to engage, take part and be in control.

Please note:

Investments can go down as well as up and you may not get back the original capital invested.  This article should be seen a information only and not advice or recommendation,  Please seek independent financial advice before taking any action.

This article is for information only and should not be construed as advice or a recommendation. The investment strategies mentioned are examples only and may not be suitable for your particular: circumstances, tax position or objectives. Please seek independent financial advice before taking any action

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