10% Decline Communication

Dear Client,

Our regulatory requirement

You may have noticed (or heard) that the investment markets have been rather volatile recently. Volatile is really another word for declining. During a quarterly period when your portfolio/fund declines by 10% or more we are required to inform you. This is such an event.

How we see things

Even though it’s a regulatory requirement to announce such movements, we know from history that these declines are perfectly normal. Indeed, they are to be expected. Market corrections are common and a sign that you are invested appropriately.

The stock market, like the economy, moves in cycles. Periods of decline, followed by longer periods where it advances. Our job is to keep you focused on your long-term plan even if our regulator (in their wisdom) feels it appropriate for us to announce bad news to you.

The key skills for a successful investing outcome

During your time as an investor who is participating in the stock market (a collection of the greatest businesses on earth), your temperament will be frequently tested. Having a successful stock market experience will ultimately come down to how you behave during the frequent periods of temporary declines whilst being an owner of a selection of the world’s greatest businesses. The key behavioural attributes are discipline and patience.

As always, if you have any questions or queries, we’re here for you.

Sincerely,