Coronavirus crisis update
As the Coronavirus continues to have a significant impact across the world, I’d like to reassure you that we are here and working hard to provide you with financial advice during this period.
Our staff are working at home to help minimise the spread and they have full access to all of our systems and information. Face to face meetings are being replaced by phone and video conferencing where possible, subject to our clients’ preferences.
We are already seeing the significant market reaction and we are working to get hard facts available to address client concerns. Our Investment Team will continue to develop this.
From a financial planning perspective this volatility is uncomfortable, but we have built our business on the foundations of robust financial planning for clients. As we know, any good plan does take short term unpredictable market fluctuations into account.
I encourage clients to speak to their adviser, if they haven’t already done so. Advisers are best placed to help you understand your plans and to advise you in a logical and rational way. If you don’t have an adviser, then please contact us. We’re here to support you.
How we are communicating market updates
We are communicating updates through the TPO Market update podcast hosted by our investment analyst Dan. We are also sending out updates to clients via email on a regular basis.
If you would like to receive communications, please speak to your adviser or contact us and request to be added to our mailing list. You can update your preferences at any time should you change your mind.
We would always recommend speaking to an adviser if
you have a specific question, however we thought it
would be helpful to share those questions that
have been posed, specifically relating to the impact
of Coronavirus and its affect on the markets.
Independent financial advice
Does your financial adviser give truly independent and impartial financial advice before telling you how to invest?
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Our view is to stick to your longer term plan and try not to react to short term volatility
We understand that we are in unprecedented times and it is completely normal to feel uncomfortable and concerned, however rest assured that we have seen and invested through similar times before. Current valuations show paper losses/falls but these are not real losses unless you sell the asset.
As part of our prudent holistic planning services, we've made sure you have access to healthy contingency funds to ensure you don't need to sell investments at an unfavourable time as doing so can magnify your losses when markets eventually pick up. At TPO, we don't try and ‘time’ markets, especially during times of heightened volatility like we are currently experiencing. Market data over many years has shown that missing just a small number of days in or out of the market can be extremely detrimental or pay dividends to future growth. It is more about ‘Time in the market, rather than ‘Timing the market’!
For clients who are invested in one or more of the TPO actively managed portfolios, the diversification of funds and asset classes has helped to shelter and reduce your overall risk exposure.
The Investment team are continuously monitoring the impact of this market downturn and assessing how our portfolios have held up against markets in general. Our Investment strategy is under daily scrutiny and review.
We have seen positive investment returns for over ten years now and it can be unsettling to see your investment values fall so quickly over a short period of time, particularly if this is your first experience of a market downturn.
If you are worried about what is happening to your investments, then please get in touch and speak to your adviser, as a change in portfolio may be an option for consideration.
It is long-term financial planning that we are focused on not short-term fluctuations and we will often stress test your financial plan with a market crash scenario when we are constructing your portfolio.
If you are invested in one or more of TPO’s actively managed portfolios, these will contain 'Alternative' investments which we have included to help mitigate some of the volatility risks that the markets are experiencing and insulate you from some of the losses.
The level to which this has been achieved will vary from portfolio to portfolio. It is worth remembering that the performance may not be as bad as you think (the papers and FTSE are not always a good gauge for you personally). For specific individual questions, please speak to your adviser.
Each fund has a trading point. Direct shares are traded instantly, but funds generally have a trading point at mid-day. Some funds however can trade later in the day, once a week or even half yearly.
When you instruct a sell trade, the fund managers will confirm the trade at the next trading point and that is the price the trade will have taken place at. In reality, when you look at your portfolio on your investment platform, the value you see is priced as at the previous day's trading point. So, if you instruct a sale this morning at 10am, the value you currently see on the screen is not necessarily going to be the value you end up with when the trades have all gone through, especially in a very volatile market as we've recently seen.
It is only the next day that you will have a clear picture of your portfolio value.