Happy New Year to you !
Your portfolio
is looking healthy as it continues to benefit from favourable
investment conditions and we think that this is a good time
to emphasise the Argyle philosophy of not putting all of
your eggs into one basket.
Diversification
as a form of managing risk is not a new idea, it was even
used by Shakespeare for Antonio, his merchant of Venice who
said…
"My
ventures are not in one bottom trusted, Nor to one place;
Nor is my whole estate upon the fortune of this present year;
Therefore, my merchandise makes me not sad."
( Act 1, Scene
1, )
You may
have wondered why some of your money is invested in assets
such as fixed interest or property when equities are doing
so well. Generally speaking the different asset classes in
your portfolio will work in opposite ways, for instance when
equities are going up gilt and fixed interest funds will
be very steady. Our job is to diversify your investments
to give your portfolio some protection from the volatility
of stockmarkets.
Our annual
Review of your portfolio is to examine the performance of
your portfolio and to rebalance your assets in line with
current investment conditions. The Review also asks you to
tell us again about your attitude to risk as this is a vital
part of the rebalancing process.
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