The daily news continues to be filled with Governments trying to reassure us that they have a good plan to control the spread of Covid-19, along with Central Banks trying to offset the shock to the global economy. As a nation we are all taking significant steps to ensure that we remain well and protect those at high risk from the virus. It has been wonderful to hear so many good stories in the communities about people selflessly helping others at their time of need, as the nation starts to get into the new routine we find ourselves in.
This crisis has and will continue to affect the functioning and well-being of our society as a whole. From social distancing and self-isolation to empty supermarket shelves, its impacts are only beginning to be felt. What we do know is that our firm is prepared, and our staff remain focused. Together, we will get through this. It is very reassuring to note there were no new cases of Covid-19 in China yesterday (19th March).
Working remotely has been a continued success here and I very much hope that clients have been receiving service as normal, albeit without visiting you directly. We are very keen to increase our contact with our clients at this difficult time and with this in mind we will be formally starting a weekly update to you all. We will aim to keep you up to date with the company and markets as we see them, along with anything topical we think you need to know about.
The Government’s aim is to restrict the spread of the virus and protect elderly people and those at higher risk – so effectively they are trying for a period of time to shut down normal society. This has negatively impacted global supply chains and levels of consumer demand. This twin shock to the economic system is unusual and damaging. The virus is taking hold in major European countries and the USA and of course it will get worse before it gets better. This means that economic recession is likely to be forthcoming. Inevitably, financial markets continue to react to the increased economic risk in the system, equity markets have fallen, and volatility has spiked to all-time highs. In markets this week, even safe haven assets are coming under pressure. It is too early to be able to suggest when the turmoil in markets will moderate, but as the issues are very much related to the virus, these issues will resolve themselves at some point.
We remain concentrated on our clients’ portfolios with great care and diligence in these challenging times. Our investment team are always focussed on meeting the objectives of all client’s assets they are responsible for. Whilst we do take a long-term investment view, opportunities do occur, and we will look to take advantage of these.
For now, I would like to wish you and your loved ones well during this difficult period. If you have any questions for us, please do contact us in the usual manner. I look forward to writing to you again soon.
Yours sincerely
Mark Pendarves
Chairman