Investment Update
Gavin Jones, Chartered
Financial Planner
We introduced our Investment Portfolios almost three years ago now and our goal was to achieve investment returns to meet clients’ medium and long-term objectives within their agreed level of risk.
Our investment style recognises that no one can predict the future. There is no reliable way of identifying investment movements in advance; it is easy, but not very helpful, to be able to do it with the benefit of hindsight.
Unfortunately all too often people are swayed by the investments that have done well in the recent past. Those that over-commit to equities when stockmarkets are going up may well regret that decision if they subsequently fall. It can be equally disappointing to miss out on future opportunities because one overestimated the risk involved.
Determining the level of investment risk that one is comfortable taking is crucial. History
Portfolio 2 3 4 5 6
FTSE 100 LIBOR
1 month Cumulative Performance to Last Price Overall
0.25 1.46 2.48 3.03 3.80 3.91 0.09
has taught us that, although we cannot accurately forecast the future direction of markets, we have to consider other assets to invest in aside from cash deposits.
Stockmarkets have been far more positive since the last update and I’m glad to say the portfolios continue to perform in line with expectations. Stock markets remain volatile but over six months those who took on more investment risk have seen greater gains in value, although over one year our lower risk portfolios have performed better.
The chart below shows an indicative performance of the portfolios to 29th February 2012*. We have also included the performance of the FTSE100 for comparison purposes and the London Interbank Offered Rate (LIBOR) as an indication of the rates available from money markets.
Overall we hope you have seen the results you were expecting with the portfolios. We regularly monitor the individual funds in depth and have an investment committee that meets once a month to ensure they remain suitable.
6 month Cumulative Performance to Last Price Overall
4.82 6.74 7.93 9.00 9.78 10.51 0.51
1 year
Cumulative Performance to Last Price Overall
9.36 7.38 4.77 3.69 2.21 1.63 0.93
2 year
Cumulative Performance to Last Price Overall
15.52 16.58 16.74 17.25 16.88 17.38 1.67
8
*Performance net of fund management costs, but not charges levied by Ascentric or Old Mill. Your actual return will be dependent on the date of investment.
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