Here we are three months after the panic that hit the markets and hence the portfolios. For most of you that sit around 40% to 60% in growth assets, we are nearly back into positive territory. The standard and sustainable portfolios have recovered at roughly the same rate and the smaller companies seem to be bouncing back a little faster.
The sustainable portfolios have held up better over the year, given the smaller tilt to smaller companies and perhaps the energy industry.
Perhaps the most notable thing to point out is the slower recovery of the UK markets. The global market as shown by the FTSE World Index is sitting with a small positive whilst the UK markets are still down around 16%.
The global diversification in the portfolio’s removes some of the risk associated with individual countries. Diversification has been termed one of the only free lunches in investing. We’re happy that all our clients benefit from that free lunch.