Investment Update – Banking Sector Developments & Interest rates
An update from Frenkel Topping Group’s in-house discretionary fund manager, Ascencia Investment Management.
The collapse of Silicon Valley Bank (SVB), the failure of Credit Suisse, as well as the latest Bank of England interest rate rise and monetary tightening measures from the Federal Reserve, have combined to create significant turbulence in investment markets.
For the investment experts at Ascencia, the current market volatility, while significant, is a blip in market behaviours similar to so many periods of volatility throughout history. It is the potential impact of events of this nature that are factored into the creation of Ascencia’s portfolios, with a focus on protecting the downside and taking an agile and pro-active approach to capitalise on the upside when it comes.
Ascencia’s investment managers, as always, have taken a pro-active approach to recent market developments, enacting the necessary decisions to best protect funds including a constant review of asset allocation and implementing a more defensive stance.
Therefore, no action is required from our clients and you can be assured that investments are being managed in the most appropriate way to maximise protection while this period of turbulence passes.
It’s important to us that our clients feel well informed, especially so during high-profile events that can be positioned as alarming in the media. To that end, we have provided an analysis of recent weeks’ economic news, an assessment of the current and likely impact on funds and a summary of how we are applying caution and prudence at this stage of the economic cycle and dialling down portfolio risk.