A note for investors from Dean Thorpe
Your invested portfolios, general money planning & CJFP remote working
I’m dropping you a line to record and circulate my thinking whilst we’re in the midst of this current global situation.
Personally in terms of the industry perspective, it currently feels very similar to the global financial crisis back in 2008 which, although the catalyst has been different this time, is still likely to create a situation where we have a global recession and a few months of ‘belt tightening’ at the same time as Government/Central Bank policy stepping in with various packages. I know it is concerning how quickly things have changed in terms of the outlook. I do feel that markets have already or will over correct and once we’re through the peak of the bad news there will be a rebalance to this.
Invested Portfolios
Remember that your money is invested for the long term and whilst there will inevitably be new experiences and maybe even a new global landscape, at Charles James we have seen and experienced periods of volatility like this in the past.
If you’re not taking any income from your invested portfolio it does mean you can leave the fund managers to do their work in terms of positions that they’re taking towards companies that could do well from this situation. Some funds were already holding cash and have already stated that they will look to deploy this when they feel that we are “beyond the peak of the bad news”. That doesn’t necessarily mean the ‘bottom of the market’ though it is reassuring to know that fund managers are repositioning portfolios and looking at the opportunities that the selloff will create.
If you are drawing an income, we are prioritising the review of these portfolios and will be suggesting a number of options and strategies to best manage the period of volatility that we have found ourselves in. If we have not recently connected with you, we will be discussing this with you in due course. In the meantime, if you have a significant level of separate savings and feel that reducing or even stopping your income/drawdown from your invested portfolio is relatively easy for you to do for a couple of months, please let us know.
In general terms and whether you are drawing an income or not, we continue to recommend that clients retain an amount equivalent to at least 3 months net income in a bank/building society account that is easily accessible. For some clients and usually those taking an income, we do and have recommended a higher level than this and we can talk to you about how to achieve this and/or work towards it. This can include NS&I products including Premium Bonds.
If you feel that you need to draw down any additional funds from your portfolio, do let us know and we will review where we could take that from to minimise any current loss.
Please do take this time to review your current level of regular expenditure. Are you able to reduce or even remove any direct debits for things that you don’t use? Does the prospect of minimal travel movement for a time mean that your expenditure this year will be lower than anticipated and enable you to adjust what you need each month?
Following the Chancellor’s announcement of packages on Tuesday 17th March and if you’re still working, there are a number of measures that you can consider taking and more information regarding these can be found here.
Remote working
As a firm we have invested in technology and infrastructure over the last few years to allow us to work remotely, which was initially created for convenience. From today the majority of our advisers will be working from home and we have plans in place to extend this for the rest of the team if/when the Government advice requires it.
We will not be booking any new face to face meetings for the time being. Instead, we will carry out meetings and calls remotely using email and telephone with a medium-term solution of an online conference facility should we find that this period of reduced contact is prolonged.
Whilst we live in unprecedented and uncertain times, our service, support and availability to you at a time in your life when you might need us more than ever remains a priority for us. If you want to discuss your situation or have an idea for a strategy that you think might be suitable for you going forward, please contact us.
We feel well prepared for the next few months and plan to continue to deliver advice in a way that helps you make informed decisions that will ultimately contribute positively to your future.
With all good wishes,
Dean C Thorpe Dip PFS
Chief Executive Director