New Year’s Message
The news flow is understandably dominated by the hindsight that 2018 was the worst year for a decade, and the volatility gave us some record setting falls in risk assets. The last few days have given us a set of results in markets that are being presaged as good news for markets, this may or may not be true. What’s important is that being invested over the long term is better than holding cash, but in the short term ‘normal’ market conditions that relationship doesn’t hold. Having the experience of good times and bad and the way to invest to achieve client’s objectives is going to be more valued than ever before. A tributary of the investment media stream has been the lack of investment professionals with more than 10 years’ experience in the ‘City’, that’s true. We have a mixture of youth and experience in our team:
- We are very glad to have added Julian Menges to our investment team as a senior member of the ‘Executive Investment Committee’ and to lead our ‘Managed Portfolio Service’ and collective investment research. Julian has worked in markets for over 30 years, beating my 28 years by a nose.
- We have the experience, the patience and the process to build value within portfolios as they fall in the short term that is rewarded as markets recover. The last 12 months have been disappointing, and there are always challenges in the most positive of market conditions.
- This team managed money through the dotcom crash and financial crisis; our clients still received the natural income they needed to support their immediate expenditure and they had planned any capital expenditure outside of their long term investments. Always remember that investments can fall as well as rise, but they do provide opportunity to support you in the long term- cash does not do that.
I’ll be writing a more detailed break down of where we are in asset allocation, geographical exposure, investment themes and key risks over the next couple of weeks, but in the interim, Happy New Year we’re keeping our eyes on the long term whilst making sure those that need it have the cash flows they required as part of their investment objectives- it’s what we do.