We had a meeting in our offices yesterday afternoon with Prudential, one of the biggest multi asset fund managers in the world. Their Investment Director Andy Brown came to discuss their unique smoothed multi asset investment proposition.
It was useful to get 1 to 1 input on the fund management of this multi asset proposition and their current views on markets and where we are in the market cycle.
In line with the consensus view, Prudential think that 2018 will be a year for growth on invested assets generally but with heightened volatility. They also think that we are in the late phase of a bull market and are carefully watching leading economic indicators for any signs that we are entering a bear market.
The Prudential are looking to reduce volatility in their underlying investments, particularly in PruFund Growth, and deliver investment returns in any part of the market cycle, through the use of alternative investments.
They are focused on long term investing and this is how we should view our investments too, over the long term. Whether or not we have the benefit of ‘smoothing’ in a volatile market we need to remain focused on the long term.
The outlook and views above are as ever subject to unpredictable or ‘Black Swan’ events.
A key message is to remain invested and avoid any temptation to sell when we see volatility in market prices. You have to be invested to benefit from returns, despite volatility and market cycles.
If you wish to discuss this or any other aspect, of your finances, please contact me.