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Market Update – 6 July 2020

We would like to keep you updated on the position of the financial markets throughout the covid-crisis.

The markets continue to recover and most investment portfolios saw small gains in June. Global equities fell back initially before rallying again, with most other portfolio assets continuing to make steady gains as industry reopens and we start to return to some form of normality. Travel bans are expected to be relaxed soon, providing a boost to sectors where travel and tourism are key. The property market has been quite good, with lots of activity since estate agents re-opened a few weeks ago. All in all, the movement out of lockdown is progressing as expected (so far) and this is reflected in the relative calmness shown in markets.

As noted last month, portfolio managers generally moved to spread the risk within portfolios in May, following the strong bounce back in equities. This tactic has proven to be prudent as June saw a small drop in equity values. However, the market outlook remains positive for the long-term and the opinion is there is still more value to be gained as we move out of lockdown and economies start to rebuild over the coming months.

Check how your investments are performing

If you have existing investments or pensions you should be reviewing how these are invested and performing at this stage. A properly managed investment portfolio should be able to limit losses in volatile times and excel in the upturn. You should also be carefully assessing the amount of risk that you are taking with your investments and ensuring this is in line with your objectives and requirements.

Any person in a position to invest capital should also be assessing the opportunities available, as there are good opportunities for long-term growth with fund prices still low currently.

If you would like a free consultation, including analysis of your current investments, please contact us to arrange a call with one of our advisers.

Performance Figures

Below are the mixed-investment sector performance graphs to show the last 5 years and 6 months, with the 6 month chart showing the full timescale of the covid-crisis impact on market performance, as well as a 10-year performance table with full details about the performances of these sectors.

  • UT Mixed Investment 0-35% shares (blue) = Cautious to Moderate Risk
  • UT Mixed Investment 20-60% shares (red) = Moderate Risk
  • UT Mixed Investment 40-85% shares (black) = Moderate to Adventurous Risk

(information gathered today using FE Analytics – prices as of close of yesterday)

6 month performance chart







5 year performance chart







10 year performance table






As you can see from the table and graphs above, the recovery in the past 3 months has been extremely good and we are in roughly the same position of market value as 1 year ago, which is reassuring. You can also see that longer term returns remain very good despite recent events.

We understand that lots of businesses and income have been affected by the lockdown in this country, and as such you may need to access investment capital in case of emergency. You should also note the well-publicised government support in place, such as grants, subsidies and loans on favourable terms (borrowing can be very cost effective with interest rates so low).

If you need to discuss any of these options please feel free to contact us and we can provide information and advice.

Finally, we should note the fact that with equity prices lower it provides an opportunity to add new investment at better value, a strategy which we have been implementing for a number of clients. Capital can be injected into the markets now or drip fed in over a period of time.

If you would like further information or advice then please contact us via email to request a call.