The spread of the coronavirus has intensified in Europe in recent days and, for many, there are deep concerns about the impact it may have on our loved ones and our day-to-day lives in the coming weeks.

Aside from the human cost, there is of course an economic one. The global scale of the virus has led to some bruising weeks for global markets and, in recent days, we saw the worst trading day on the FTSE100 index since ‘Black Monday’ in October 1987.Clearly, this has an impact on market sentiment and there will, inevitably, be heightened volatility as the threat of a recession grows.

It is also worth emphasising that, despite these shocks, evidence shows that the worst days are often followed by some of the best days. Therefore, rather than selling low and trying to time the markets, time in the markets and weathering the storm generally reaps rewards as valuations recover. Uncertainty is likely to be the only certainty in the short-term and staying the course with a diversified portfolio of investments, positioned for the long-term, is typically the best route to achieving your goals.

These turbulent times also provide investment opportunities for the roster of active fund managers who serve St. James’s Place clients. Lower valuations caused by market falls provide scope for our managers to deploy cash and add to positions in companies trading at attractive prices. Indeed, some of our managers have reported portfolio turnover, changes to the holdings in their portfolio of investments, of around 10% and one manager commented this week that “it has been a while since we have been able to add this level of value for our investors”.

Rest assured that, throughout these periods of market volatility, the Investment Committee is in frequent contact with fund managers to ensure that they are continuing to manage client money according to their agreed mandate and delivering the best possible outcomes for clients. To keep you updated with our latest thoughts, we will continue to post frequent updates and reflections on the ongoing economic impact of the corona virus.

Please do get in touch if you have any queries, we would be happy to assist you. Thank you again for entrusting your investments with Frederick Charles Wealth Management in Partnership with St. James’s Place.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

Frederick Charles Wealth Management Limited.

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