Are you concerned about stock-market volatility and the impact on your investments or pension fund?

Fiduciary Wealth Team

Over the last four years investors have had to suffer a rollercoaster ride as markets have lurched from one crisis to another. From financial meltdown in 2007 to bailouts for Greece and Portugal and now a credit downgrade for the US - there has been plenty to worry about.

Investors are now quite rightly turning their attention to the management of either family or personal wealth. The thing uppermost in people’s minds is – investment performance. Clients who have suffered capital losses have plenty to think about....

How has our investment performed over the period?
Do we have the right asset allocation strategy in place?
Has our investment portfolio been managed pro-actively rather than passively and have the right calls been made at the right times?

Just about anyone, professional or not, can deliver positive investment returns in a buoyant market but in an unpredictable sideways trending market with high levels of volatility you need an experienced hand by your side. The question you should ask yourself is whether your investment manager has constantly monitored your portfolio during this turbulent period to capitalise on the potential investment opportunities as well as anticipate and reduce the inherent portfolio risks?

Did your investment manager anticipate the August 2011 stock market crash or were they caught napping as a result of which your investments have suffered a decline in excess of 20%?

Ask yourself this question, were you advised to dispose of your equity positions in the Spring and hold cash when equities were losing momentum and subsequently advised to re-enter the markets in late Summer at hugely discounted prices? Why not?

It is impossible to predict troughs and peaks as no one comes with a bell to warn you but a good investment manager should have an entry and exit strategy close to the bottom and highs and more importantly avoid the huge losses.

Perhaps you have buried your head in the sand and thought that by holding your assets in cash you will escape any downturn in equity markets and choosing to forgo any real return on your investments are sitting on the sidelines wondering when it is safe to go back into the markets. Just when you think it is a good time another potential crisis looms and you hold off a bit longer eventually realising that you have missed out on several opportunities and the real value of your investments has fallen because of inflation.

Ultimately there is always someone ready to advise you on the merits of a tax efficient investment or retirement scheme but what value is there in tax efficiency if your investment adviser cannot offer you a proactive asset management service built through developing long term relationships and trust between adviser and client.

Now what did your adviser say?
If you are unhappy with the performance of your investments call us on Tel: 956 796 911 or email on for an appointment.