An investment manager has launched a market volatility tool kit advisers can use with their clients to deal with challenging conversations around COVID-induced market panic.
Russell Investments’ downside management toolkit, launched last week, contains a range of blogs, video resources, educational and technical articles and infographics centred around the premise of how professional investors view the current market downturn.
Advisers and clients are able to view content on investment strategies during uncertain times, the importance of staying in the market during a downturn, making rational decisions through incidences of market panic and how to ensure the “right risks” are taken.
Russell head of wholesale partnerships Neil Rogan told ifa it was hoped the new toolkit would be useful to advisers as they sought to reassure clients that their investment strategy was well placed to ride out the current market turmoil.
“The feedback we have heard from advisers is that they are reminding their clients of the value of their investment strategy over the long term and the importance of sticking to the strategy and remaining invested at this time,” Mr Rogan said.
He added that despite the ASX having now fallen further since the beginning of the virus-related correction than during the GFC, clients were in the main resisting panic-selling of their share portfolios, given the current volatility was due to a specific health crisis rather than systemic issues in financial markets.
“We are not seeing this, which we believe is because the key driver of the market volatility is health related rather than it being driven by the markets, as occurred during the global financial crisis,” Mr Rogan said.
“As a result of this, clients are attuned to understanding the fundamentals of their long-term investment strategy are sound.”
Mr Rogan added that emphasising the importance of a well-diversified portfolio, and the problems with trying to time the market, were key points resonating with advisers through their conversations with clients so far.
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