Quarterly Investment Update & Annual Re-balancing
There are two key messages in this month’s newsletter.
1. In a return to our more traditional format, the first article in our Winter Update contains an overview of investment market and asset class performances over the April to June quarter.
2. In August we conduct the annual rebalancing of your portfolio – is there anything we need to know before we do that for you? i.e. You need to make an additional withdrawal or have additional money sitting in the bank, earning little, that you would like advice on?
Newsletter:
As we reported three months ago, the first quarter of the year was exceptionally challenging. It’s safe to say that when a global health crisis triggers a global market meltdown, its unlikely to be smooth sailing. But the second quarter was extraordinary for entirely different reasons. What emerged from the rubble of the market low on 23 March, was a second quarter rebound that surprised and confounded even the most ardent bulls.
The second article takes readers back to 1998. Not to reminisce about popular girl band the Spice Girls, but to provide a parable of sorts about a sound investment strategy. It’s a timely reminder that building an investment strategy based on data and evidence, can’t win every single year, but it does tilt the odds in your favour of achieving long term investment success.
Whilst the markets have recovered significant ground over the last three months, the catalyst that undermined them in the first place (Covid-19) remains untamed around the globe. Given that, it continues to be a risk factor that could yet have more influence over markets in the weeks and months ahead. However, for the time being at least, markets are looking past this uncertainty towards the prospect of better times ahead.
As we move into the second half of this very unusual year, we look forward to continuing to update you with the progress of investment markets.
Annual rebalancing of your portfolio.
Every year in August, we rebalance your portfolio to ensure the value of funds held in shares & property (growth assets) and bonds & cash (income assets) remains appropriate for your plan.
If you have additional money to invest this is the lowest cost time of the year to do so. Alternately, if you think you will need to make a lumpsum withdrawal from your portfolio in the next 6 months, now is lowest cost time to do so. If either of those is the case, please let us know as soon as possible by email to info@foxplan.nz or phone 0800 NO STRESS (0800 667 873) or contact your Adviser.
Kind regards,
The FoxPlan Team