Openwork Investment Committee – Investor Update March 2020. In this difficult time, we hope that you and your family are all well and managing through this extraordinary and tough period.
The Openwork Investment Committee met on Tuesday 24 March and we would like to reassure you that while your investment values are likely to have fallen in the short-term, we are confident that all processes are being followed correctly.
We discussed all the following investments, some of which you may hold:
• Omnis Funds
• Openwork Graphene Model Portfolios
• Omnis Managed Portfolio Service
• Openwork Portfolio of Funds
• Openwork Recommended Funds
• Prudential PruFund
• VCT and EIS Products
There are a number of points that we wanted to highlight to you.
As you have seen, global equity markets fall and the value of your own investments fall as well. It is natural that some of you will be wondering whether you should sell your investments and move to cash or some other “safe haven”. Our strong message to you is stay invested.
Focus on the investment objective that you set with your Financial Adviser at the outset and trust the process.
History shows that as night follows day, global equity market recoveries follow global equity market falls and it is damaging to miss out on the recovery days. We even saw this yesterday when the FTSE 100 Index had its second best day ever rising by 9.1%. It was similar in the United States where the Dow Jones 30 rose by 11.4%. If you had moved to cash 24 hours earlier, you would have missed out on these gains.
Understand Your Attitude to Risk
We know that you will have discussed your Attitude to Risk and your capacity for loss comprehensively with your Financial Adviser. We are delighted that this process appears to have really worked during this extremely short-term volatile period.
If you are a Cautious investor, you have been protected from the extreme falls of global equity markets. In fact, if you are invested in the Openwork Graphene C1 Cautious Model Portfolio, your
investment will have fallen by less than 1% over the last 12 months, compared to the FTSE 100 which has fallen by over 20% (Source: FE Analytics).
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