BFG Report – Coronavirus March 2020
With our core mission being “assisting clients to make smart decisions about their wealth” your portfolio structure has assumptions that risks, like share prices falling, will occur.
We set up your portfolio with other investments like cash (including term deposits) to help reduce the impact of this risk on your wealth. Hence diversification is core to your portfolio’s function and considers the market environment.
When you invest in shares and property, you do so for the long term, which in turn, provides some protection against the short-term volatility of markets.
For some, this volatility is likely to provide an opportunity to buy investments at lower long- term prices. For others, to avoid selling investments at a poor time, there may be a need to draw on cash and term deposits to assist with providing for living expenses.
Importantly your portfolio is expected to deliver, even after recent weeks, a long-term return that will meet your financial objectives. We have worked with you to understand how much risk you can take with your investments. This will continue to hold you in good stead through these difficult times.
Some of the actions we are undertaking include:
- Reviewing cash account holdings to ensure regular payments can continue and recommending action if required e.g. withdrawing funds from a term deposit to top-up a cash account within an Allocated Pension.
- Continually monitoring the market and research to determine if or when clients who have funds awaiting an investment opportunity should consider buying.
- Reviewing and considering the implications of the government stimulus packages.
BFG Day to Day Operations
We have been assessing our business continuity preparedness to ensure we can respond effectively as the situation evolves.
These are a few of the actions we are adopting:
- Social distancing within the BFG Office and of course an increased focus on cleaning and disinfecting all areas on a regular basis.
- Offering clients the opportunity for remote appointments either via teleconferences and videoconferencing.
- Ensuring BFG can operate remotely e.g. work from home if required, to continue to provide services to our clients.
If you have any further questions, please contact us.