Six things to Consider
in
Adverse Markets
Periods of weakness in world markets are inevitable but the long term benefits of investing in these markets are well established. The key is to minimise the effect of any downturn and to maximise the subsequent recovery.
Intermediaries and their clients should consider:
1. Platforms
An important first step is to utilise and leverage the functionality of a well established platform. Cofunds has a diverse range of over 1000 funds from more than 70 fund groups including 69 Cautious Managed Funds, 50 UK Corporate Bonds, a good range of absolute return funds and a selection of money market funds. Together with online switching and the fact that Cofunds does not wait for settlement of redemptions, mean that switches are executed quickly minimising potential loss in uncertain times.
You can access full information about funds available on Cofunds here.
2. Cofunds cash account service
Earlier this year, Cofunds introduced the Cofunds Cash Account, a client money account to hold cash destined for investment, on platform. Key benefits:
- Allows for timely investment (no need to post cheques)
- Able to take one off and regular withdrawals
- Provides an efficient location for:
- settlement of investments
- investment income - rebated trail and other cash
- Pays interest at 50bps below Bank of England base rate for all balances
- Provides a great shelter during adverse markets – rather than being taken off platform and given to the high street banks.
Learn more about the Cofunds cash account service here.
3. Cofunds Cash Reserve
Cofunds Cash Reserve enables investors to hold cash temporarily within a stocks & shares ISA or a PEP - an ideal way for investors to retain their ISA allowance in adverse markets.
Secure this year's ISA allowance...
Learn more about ISAs and the Cofunds Stocks & Shares ISA Cash Reserve here.
4. Cofunds Pension Service
The Legal & General Portfolio SIPP has a trading account on Cofunds within the wrapper allowing investments to be held temporarily in cash pending an investment decision. The trading account can be easily viewed and buys can be executed online. Cash held in the trading account attracts a competitive interest rate of 100bps below bank base rate.
Learn more about Cofunds cost effective solution for managing your pension business here.
5. Collectives consolidation with Cofunds
It could be the ideal time to consolidate your client's holdings onto the platform. In this way intermediaries can review their client's investment approach online and ensure it is appropriate for current market conditions.
6. Pension consolidation with Cofunds
With investors over the age of 45 typically having more than 1 pension, a review of investment approach and consolidation into a single pension could be appropriate. A pension with the added flexibility and capability of investment platform functionality would make ongoing management significantly easier.
For more information on Cofunds range of services please contact us on 0845 604 4001*
Resources
Contact us
to discuss how using Cofunds can help minimise the impact of adverse markets.