Impact of recent market turmoil on client investments

30 June 2016
The outcome of the EU referendum was a major surprise to stock markets and we are likely to see some market volatility until the full implications become clear.

Whilst this can be extremely unsettling for you and your clients, it's important to remember a pension is a long term investment and its final value will take into account stock market movements over the whole term of the policy.

We have prepared some messages for you to use with your clients:

For those clients invested in a Governed Portfolio or Governed Retirement Income Portfolio

  • These are designed to be robust in a wide range of market scenarios and Royal London's investment modelling takes account of extreme market events such as this.
  • The portfolios are well diversified and benefit from an ongoing review process which means Royal London can adjust the mix of investments to reduce the impact of any sharp drops, or take advantage of any buying opportunities.
  • Royal London are closely monitoring the impact of the UK’s decision to leave the EU on the portfolios. Since the vote the majority have risen with the exception of GP 4, 7 and 8 and GRIP 5 which have experienced slight falls due to higher exposure to equities.

For those clients who are in a lifestyle strategy and within 5yrs of retirement

  • These are designed to be robust in a wide range of market scenarios and Royal London's investment modelling takes account of extreme market events such as this.
  • The portfolios are well diversified and benefit from an ongoing review process which means Royal London can adjust the mix of investments to reduce the impact of any sharp drops, or take advantage of any buying opportunities.
  • Your investments are gradually switched from higher to lower risk portfolios & assets as you approach retirement to further reduce the impact of any sharp drops in the market.

For at retirement clients who are taking ad hoc income from their plan

  • The decision to leave the EU has resulted in high market volatility and some funds are experiencing falls which may ultimately impact your longer term income requirements. If you are in any doubt about the suitability of your request at this time please get in touch with me, your adviser.

If you have any questions about specific funds please contact our Investment Marketing team in the first instance.

Last updated: 30 Jun 2016

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.