The benefit of holding diversified investments

Benjamin Sear, Managing Director of Independent Financial Advice firm Martin-Redman Partners, takes a look back on the markets over the past quarter, and how those holding diversified investments in their pensions and other investment plans have fared.

Life is slowly finding a new rhythm at home, all helped by the sun shining and a glorious forecast of warmth for the Easter weekend. The garden is looking better than it normally does for this time of year, neighbours are peering over fences for a catch up and video calls to keep in touch appear the new thing to do. The dog is busy sun bathing, little does she know that the long weekend means a haircut and bath (probably for all of us) and the children take over the "office" for the weekend as a makeshift campsite to escape the old fuddie-duddies in the house.

One thing I am sure you will have heard an Independent Financial Adviser talk about time and time again is the benefit of diversity. When we as Advisers talk about diversity, we explain that it means spreading your and our investments across a wide range of asset classes, sectors and geographies. The theory being that a wide range of alternative investments should provide us and you with a softer landing when markets get choppy as not all investments will perform in the same way.

Personally, I have always believed that the value of Martin-Redman Partners is not be measured when markets are rising, the measure of our advice should be considered when markets fall.  Therefore, not being one to hide from scrutiny I felt that we should look at the diversity in a typical basket of funds which we recommend and have shown performance data for the various investment sectors over the last quarter from the 1st of January until the 31st of March 2020.

  • 7.28% - IA UK Gilts                           
  • -1.22% - IA Global Bonds                 
  • -4.36% - IA Sterling Corporate Bonds
  • -4.36% - IA Japan                              
  • -13.47% - IA North American                          
  • -14.28% - IA Global                                              
  • -15.35% - IA Europe Excluding UK -18.98%
  • -19.00% - IA Property other                             
  • - 27.92% - IA UK All Companies       

The results whilst sobering to read from an investment viewpoint show the benefits of a diverse portfolio, by holding a diverse range of investments we hope that we have helped protect our clients investments from the worst of the falls.

In fact the portfolio I based this research on (a moderate portfolio based on a risk scale of 3 out of 5) on that very same frame of the 1st of January to the 31st of March had fallen by -9.96%, whilst we are very disappointed to see any losses it is reassuring to us that our belief in diversity and our desire to follow our rules and take our medicine appears to be good advice.

If you want to talk to an Independent Financial Adviser about your current situation, to review your investments or to ask questions of us then please either drop us an email to info@martin-redmanpartners.co.uk or call the team on 01223 792 196.

The team at Martin-Redman Partners are regularly posting commentary and viewpoints to our website https://martin-redmanpartners.co.uk/knowledge-centre I hope it helps, all feedback is appreciated and we are open, here and keen to talk with you.

We wish the best of health to you and your families and have a Happy Easter.

Kind Regards

Benjamin Sear

Managing Director

 

About Martin-Redman Partners  

We are a team of experienced Independent Financial Advisers (IFAs) who can advise on your personal or business financial arrangements. We have been building trusted relationships with clients for many years by articulating clear and tailored recommendations in areas ranging from investments to retirement planning, to complex estate planning advice.  

We offer expert independent financial advice throughout Cambridgeshire, Leicestershire, Suffolk, East Anglia and the South East.  Many of our clients are within, or are in the surrounding areas of Cambridge, Grantham, Stamford, Bury St Edmunds, Frinton on Sea, Ely, Peterborough, Huntingdon, Cambourne, Newmarket, Soham and Oundle.

The information contained is for guidance only and does not constitute financial advice. It is based on our understanding of UK legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly, no responsibility can be assumed by Martin-Redman Partners its officers or employees, for any loss in connection with the content hereof and any such action or inaction.



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