London-based Moneyfarm, a company providing wealth management services “designed around you,” notes that at the end of every quarter, their investors are provided a complete report outlining the performance of their portfolios.
Moneyfarm writes in a blog post update that these reports come with comprehensive insights regarding wider market developments and they also provide details of the clients’ portfolio’s composition. It’s basically a breakdown of “everything affecting the investor’s progress over that period,” Moneyfarm explains.
The company added:
“The first quarter of 2021, for example, has been defined by the slow return to economic normality. As the UK begins to open up after months of restrictions, so too are the outlooks of investors, who are now beginning to envisage life after Covid-19. It has meant a positive quarter, one that has raised plenty of considerations for investors and wealth managers alike to consider.”
As noted by the Moneyfarm team, the report’s “most important” section provides key details on performance. This past quarter, their portfolios were “unaffected by the GameStop saga, whereas the resurgence of ‘value’ stocks is something that has encouraged us to act,” Moneyfarm claims.
Moneyfarm adds that “the proportions of different assets in [their] portfolios are determined by the risk level assigned to any given investor.” For instance, lower-risk portfolios will typically carry more bonds, and higher-risk portfolios will have a significantly large allocation of equities.
Moneyfarm explains that when they start rebalancing their portfolios – which may try to take strategic advantage of opportunities identified by their professional team – these “percentages can shift.”
Moneyfarm further notes that P6 is “a relatively high-risk portfolio, so it features a significant chunk of equities.”
Moneyfarm also mentioned:
“During the first quarter of 2021, the focus was on vaccine rollouts and how the reopening of various economies might impact markets. Looking ahead to the current quarter, the outlook is equally positive, with vaccination programs in full swing and some economies already beginning to take steps toward normality.”
The company added:
“Value stocks outperforming growth stocks, the continued rise of China, US bond yields, Brexit – these are just a few of the topics we’ve highlighted to keep an eye on as Q2 develops. As wealth managers, keeping investors to date on the topics that drive our decision-making process is an important part of our role.”