Latest on pandemic investing plus 7-page volatility advice tool from Fidelity
5 April 2020
Nothing has been behaving as it should over recent weeks – normal market dynamics have broken down and governments have stepped in to hold up economies as best they can.
Fidelity is producing constantly updated insight into the impact of the pandemic in respect of market and investment issues, utilising the breadth of its investment capability around the world, through articles, webcasts and recorded calls between its CIOs, which are accessible through the Fidelity website: ACCESS HERE.
The next recorded call between Fidelity’s CIOs is taking place on Tuesday 7 April.
In the call, Fidelity’s chief investment officers (CIOs) will be hosting the latest of their weekly discussions on the issues for the markets and investment portfolios resulting from the impact of the Coronavirus. The call will be at 09.00 on Tuesday 7 April.
In this article, Global equities manager, Jeremy Podger looks at the three distinct phases of the coronavirus pandemic and discusses how they map onto both equity market returns and economic activity.
MANAGING INVESTING IN UNCERTAIN TIMES – 7-page document
Volatility support PDF for clients
Fidelity has produced a 7-page document that covers all things volatility.
Click here to access: managing-investments-in-uncertain-times
The document is designed as a useful tool for advice firms to use with clients. It is chaptered as follows:
• Understanding volatility
• Volatility is normal
• Keep a cool head
• Time in the market
• The value of diversity
• Equities versus cash and bonds
• The benefits of regular investing
• Looking ahead
Investors should note that the views expressed may no longer be current and may have already been acted upon. Past performance is not a reliable indicator of future returns. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. The value of investments in overseas markets may be affected by changes in currency exchange rates. Investments in small and emerging markets can be more volatile than other more developed markets. Funds which invest in smaller companies can carry a higher risk because the share prices may be more volatile than those of larger companies. Some funds can use derivatives with the aim of risk or cost reduction or to generate additional capital in line with their risk profile. In such situations performance may rise or fall more than it would have done otherwise, reflecting such additional exposure. Funds with concentrated portfolios may also have the potential of having high volatility. Some equity and fixed income funds take their annual management charge from capital and not from the income generated by the fund. This means any capital growth in the fund will be reduced by the charge. Capital may reduce over time if the fund’s growth does not compensate for it. The price of bonds is influenced by movements in interest rates, changes in the credit rating of bond issuers, and other factors such as inflation and market dynamics. In general, as interest rates rise the price of a bond will fall (and vice versa). Bonds with a longer time to maturity are generally affected to a greater degree. Investments into Fidelity’s funds should be made on the basis of the current prospectus (if available) and the key information document. These documents, together with the current annual and semi-annual reports, are available in the ‘Documents’ section of each Fund’s online factsheet.
The value of investments (and the income from them) can go down as well as up and you may not get back the amount invested. Past performance is not a reliable indicator of future returns. Investments into Fidelity’s funds should be made on the basis of the current prospectus (if available) and the key information document. These documents, together with the current annual and semi-annual reports, are available in the ‘Documents’ section above.
© FIL Limited 2020
ATEB Consulting’s Steve Bailey looks at how the FCA’s view of suitability and what that means in practice for...
The Supreme Court has ruled that a pension transfer made in ill health should not be subject to inheritance...
Lee Old, director, Antony George Recruitment, provides some tips for tackling your annual review meeting. The answer to this question...