Selection and regular review of fund managers vital
Factors such as management team changes and management's short-term views can drastically affect funds.
Add BT as a preferred source
FOLLOWING the US presidential election with Donald J Trump emerging as president-elect, most major indices fell; some by more than 5 per cent in a day. They rebounded the very next day. Short-term volatility in the stock market is expected given the heightened uncertainty.
In October, our hypothetical client Ivan invested in an Asia-balanced portfolio with Avallis's Portfolio Asset Management (PAM). It is not due for rebalancing for another five months but seeing the huge fluctuations in the stock markets, Ivan came back to me again - this time over his other investments. Specifically, he was concerned over his existing European and US portfolios which were not regularly reviewed by his advisers.
Ivan understands the risk-return relation inherent in any investment and expected some volatility. However, he felt he had taken on more risk than he was comfortable with in his existing US and European portfolios.
Share with us your feedback on BT's products and services
