See how our portfolios delivered positive returns over the year
Chart shows performance of the OMPS portfolios (over the last year) compared to global equities and global fixed income.
If you are invested in OMPS, your financial adviser will have advised about the need to take a long-term approach to investing. The performance of your portfolio will depend on various factors including but not to limited to when you invested and any withdrawals or income you may have taken. Your financial adviser will be able to talk through your portfolio performance in more detail.
Over the last year, markets have been volatile, particularly as we entered 2022. Higher inflation has meant that central banks are having to raise interest rates, though there remains uncertainty as to how far they’ll go given that economic growth is already slowing down. Russia’s invasion of Ukraine has further exacerbated volatility in markets.
Our portfolios invest across different markets and asset classes and as such are still susceptible to market movements. Through our Tactical Asset Allocation approach we can help mitigate against some of these falls but cannot eradicate them completely. All investing comes with volatility and it is this volatility that over the long-term delivers performance.
The level of risk and volatility you are able to take dictates what portfolio you will be invested in. Despite portfolios falling in value in 2022, over the one-year period to end March 2022, most of them have delivered positive returns for clients.
In the short term, markets will fluctuate and all portfolios, including those within OMPS, may experience negative performance over shorter periods of time, but we will still be susceptible to market movements.
The chart in the previous page shows the performance of the portfolios over the year to 31 March 2021. For comparison, we have included a broad global equity index (MSCI All Countries World Index), and a fixed income index (ICE Bank of America Global Broad Market).
Perhaps more importantly, the portfolios have behaved as we expected them to – with the adventurous portfolio delivering the best total return, but being the most volatile during the 2022 market sell-off.
The performance of the portfolios is attributed to the strategic asset allocation, the tactical asset allocation and the actively managed funds within the portfolios.
Our approach to tactical asset allocation, whereby we increase and decrease exposures to the different regions and asset classes has added value throughout the year.
As always, you should not be investing in OMPS with a one-year time horizon but the charts in this report show what we have delivered in the last year. To discuss the longer-term performance of your portfolio, please speak to your financial adviser.
