09 April 2020
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Seven Insurance Brokers Market Update
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VAM Funds

Welcome to our weekly newsletter, where the Manager summarises the key market developments over the last seven days.

The Noise

Boris Johnson was moved to the intensive care unit on Tuesday after his Coronavirus symptoms worsened. The Prime Minister was admitted to hospital on Sunday evening with persistent symptoms. Yesterday, Chancellor Rishi Sunak announced that the Prime Minister is improving and is now sitting up in bed. Downing Street politely declined President Trump’s offer of help on Tuesday, after he contacted all of Boris’ doctors offering his help and urged top US drug companies to do everything they could to help his “really good friend”

Markets have edged gently upwards over this week as investors adapt to the new normal and volatility continues to mediate, despite remaining elevated. These price increases were observed globally, allowing investors to recoup some of the losses they have experienced over the previous few months.

China reported no new Coronavirus deaths for the first time on Tuesday since it started publishing daily figures in January. The number of new cases in China has been slowly declining, now at about 30 per day. China is concerned that a second wave of infections could be brought in by foreign arrivals, and has therefore shut its borders to foreigners and reduced international flights.

The Numbers

GBP Performance to 08/04/20
1 Week
YTD
Absolute Level
Equity GBP Total Return (MSCI)

UK (MSCI UK)

3.20%

-24.30%

4865

Europe (MSCI Europe)

4.30%

-18.30%

5482

US (MSCI USA)

11.30%

-8.70%

7442

Japan (MSCI Japan)

4.20%

-9.90%

5744

Emerging Markets (MSCI Emerging)

5.60%

-15.90%

415

Fixed Income GBP Total Return

UK Government (Barclays Sterling Gilts Index)

-0.10%

7.60%

314

Investment Grade Hedged (Barclays Global Aggregate Corporate Bond Index)

0.80%

-3.80%

291

High Yield Bonds Hedged (Barclays Global High Yield Index)

1.40%

-14.80%

451

GBP Performance to 08/04/20
1 Week
YTD
Absolute Level
Currency Moves

GBP vs USD

0.10%

-6.60%

1.24

GBP vs EUR

1.10%

-3.60%

1.14

GBP vs JPY

1.60%

-6.50%

135

Commodities GBP Return

Gold (in £)

3.30%

16.10%

1336

Oil (in $)

23.40%

-55.30%

26

Source: Bloomberg, data as at 08/04/2020

The Nuance

As the situation we all now find ourselves in evolves, we are beginning to adapt to the containment phase of the fight against the Coronavirus. The next step in this process is for governments to begin to understand how to restart economies in the midst of the virus. The threat the Coronavirus poses isn’t going to dissipate overnight; governments and businesses need to start to work out how exactly to get the cogs of the economy turning again without risking a second wave of new cases.

As a picture emerges as to what that might look like, investors will be able to evaluate which sectors will emerge first and, hence, identify investment opportunities. However, it will take time for governments to figure out how to lift lockdown rules and restart economies without risking the health of their populations.

As an investor, most of the time, you are holding your investments as the passage of time allows companies to generate revenues and earnings, which in turn pay dividends and accumulate capital growth. During this time the Manager constantly reviews the portfolio risks and monitors its investments, aiming to hold for the long term and allow compounding to work its magic. If you buy a stock and sell it five years later for a profit, you acted on only two days – the day you bought, and the day you sold. On over 1,800 days you did nothing.

Last quarter, the rapidly changing market conditions meant that the Manager was more actively trading than normal. However, as markets adapt and settle down to the new conditions, we once more find ourselves in a time where patience is required. Whilst you can still expect the Manager to react to incoming data and respond accordingly to its analysis, the intention is to be patient and hold on to its investments, allowing time to compound their value and build wealth over the long term.

Sanlam Virtual Event Programme

Rather than a “Quote of the Week” section this week, we would like to take the chance to tell you about a programme of virtual events the Manager is going to be running.

The last few weeks have been extremely testing for everyone, everywhere. The Manager recognises that, in the midst of this uncertainty, its primary role is to act as stewards of its clients’ wealth and to navigate a way through the storm on their behalf. However, it also knows that many are finding this new way of living challenging. The Manager has therefore designed a programme of events to help clients and contacts stay healthy, provide some light-hearted education and have some fun whilst we find ourselves house-bound.

Please click on the flyer to the right which will take you to our website and the schedule of virtual events which have been created with experts in a variety of fields, designed to offer something for everyone and accessible with just a click of the button.

Please sign up to any and all that you feel might be relevant to you and/or pass onto to your own clients as appropriate. Further information on each event is available by clicking the ‘REGISTER HERE’ hyperlinks on the website and you can register for any number of these events using the Eventbrite webpage

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For more information on VAM Funds, please contact us at sales@vam-funds.com or on +230 465 6860

Issued by Seven Insurance Brokers LLC

Sanlam Private Wealth is a trading name of Sanlam Private Investments (UK) Ltd.

Past performance is not a reliable indicator of future returns, investing involves risk and the value of investments, and the income from them, may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.

The information and opinion contained in this market view should not be treated as a forecast, research or advice to buy or sell any particular investment or to adopt any investment strategy. Any views expressed are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness by Sanlam. Any expressions of opinion are subject to change without notice.

Disclaimer: VAM Cautious, Balanced and Growth Funds are compartments of VAM Managed Funds (Lux).
This document is intended for use by professional financial advisers only. The distribution of VAM Funds and the offering of the shares may be restricted in certain jurisdictions. Private investors should contact their financial adviser for more details on any of the products featured. It is the responsibility of any person in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdictions. Prospective applicants for shares should inform themselves as to the legal requirements and consequences of applying for, holding and disposing of shares and any applicable exchange control regulations and taxes in the countries of their respective citizenship, residence or domicile.


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