Things have moved pretty drastically since our last market update, with global stock markets falling in lock-step as a sudden and unexpected oil price war added to the uncertainty of the ultimate impact of the ever increasing spread of the Coronavirus.

In the previous update I alluded to the fact that our diversified approach to investing was helping to support portfolio values during these volatile times. I thought it might be useful to see that process in action.

The chart below shows the performance of each of the underlying components of our Balanced Portfolio over the year to date. As you can clearly see the falls in global equity holdings have been partially offset by rises in the prices of Government and Investment Grade Bond holdings. Obviously investors in our other portfolios will have differing returns based upon their chosen risk profile.


Even with this portfolio “insurance”, investors in our Balanced Portfolio have still seen a fall in value over the year to date. However it is vital to consider what impact the current crisis has had over the longer term. The chart below shows the comparative performance of our Balanced Portfolio over the last twelve months with the FTSE100 and Cash on deposit (represented by BofE base rate). I hope you will agree that, when viewed through this longer lens, the market gyrations over the last couple of days don’t look quite so terrifying.


UK stock markets have recovered sharply today but the coming weeks will certainly still see more volatility in share prices. Once again we recommend that medium to long-term investors hold their nerve and remain invested.