deVere Model Portfolios Market Update

Following the recent market volatility, we would like to provide you with a market update:

Growing concerns around the coronavirus have led to a sharp increase in volatility in markets over the last few weeks. Attached and below are some performance numbers for the deVere model portfolios over the recent volatility. The deVere Models Portfolios have all held up well in the sell-off, particularly relative to large falls seen in the equity markets (Global Equities losing around 10% of their total value and US Equities falling by nearly 11%).

The protection is largely down to the combination of selected managers with different investment styles and approaches. The dVAM Diversified Liquid Alternatives fund returns contrasted well with global markets and were down less than 3% over this market correction, offering protection to clients’ portfolios when needed most. Additionally, the Pacific funds outperformed the peer group as they are conservatively positioned, the funds have been carrying less equity risk than most. 

Whilst it’s a short time frame, the deVere models delivered protection and added value across the board. Last week will have undoubtedly caused some worry for clients, it does provide a welcome reminder of the value of diversification.   Looking ahead, whilst the falls in markets are unsettling, equities will recover long before the news of the coronavirus moves off the front pages of newspapers. Valuations of many markets have improved, and some are looking increasingly attractive for long term investors. Times like these often provide significant opportunities for investors to enter that market at attractive levels. 

Performance Report (in GBP)

 Sell-Off % (19 Feb – 5 Mar)

MSCI World Index -9.8

FTSE All Share Index -9.7

S&P Index -10.7

deVere Defensive -2.6

deVere Cautious -3.3

deVere Balanced -4.5

deVere Moderate Growth -5.6

deVere Growth -6.3