Are your savings and investments working hard enough?

Saving and investing is just like setting out on a journey; you know where you want to get to but you need to work out the best way to get there. If you are not sure of the best route, you may well use a guide to help you navigate the best way to your destination.

In financial terms, your destination may be a secure retirement or a house purchase and the route to that destination might well involve investing in assets such as stocks and shares. If you don’t know which of these asset types are most appropriate for you and your circumstances then you might decide to enlist the help of a guide. In financial services terms, this is a Financial Adviser.

With or without a guide (or Financial Adviser) it is important to regularly check your progress to ensure you are on course to reach your destination. As part of your regular check, you should be asking:

  • how far have I got on my journey and how much further do I have to go?
  • is the route I selected when I set out still the best way to get to my destination?

In financial terms, this is called a regular review. Your FPI policy statements should help you answer these questions. Once you know where you have got to, you need to start thinking about the best way forward.

What has happened to financial markets so far in 2017?

Generally 2017 was another period of strong positive growth for most world equity markets, for example:

  • US S&P 500 +21.8%
  • Euro Stoxx 50 +10.0%
  • MSCI Emerging Markets +31.0%
  • MSCI Brazil +26.9%

However, whilst equities had a good year, the same is not necessarily true for world bond markets, for example:

  • US Treasuries +2.1%
  • UK Gilts +2.7%
  • German Bunds + 0.2%
  • Japanese JGBs + 0.5%

Source: Schroders Global market perspective, December 2017

So what does this mean for me?

The funds that you are currently saving or investing in may or may not still be appropriate for you at this stage of your journey. Typically equities work well over the medium to longer term so if you are approaching retirement or planning to encash your policy in the next few years, now might not be the right time to be invested solely in equity funds.

You can find out more about the full range of funds available to you by looking at the Funds section of our website. In the Fund Centre you can discover more about the fund’s investment objectives, holdings, charges and performance. This information will help you decide if the funds you are investing in are still the best funds to help you get to your destination.

If your current fund choices are not meeting your needs – change them!

You can switch funds or redirect future premiums online without charge, just login to the FPI Portal or speak to your financial adviser. You can access all your policy details through our Portal at your own convenience. It is important to act now if you want to be sure that you are still on track to get to your financial destination.

Are you still unsure what to do and how to proceed?

If you are not comfortable navigating your own financial journey then it is important to get professional guidance from a Financial Adviser. Whilst we are not able to give you specific fund advice and investment advice, because we can’t possibly know all your personal circumstances, we can give you information and data on the products you have and the funds they invest in. All this information is available on our website. Travel well!

Please remember that past performance is not a reliable guide to future performance. The value of an investment and any income from it is not guaranteed and can go up and down depending on investment performance and currency exchange rates.

By Kevin Traish: Funds and Investments Manager, ME and Africa

Adrian Emery – CEO FPI

Message from the CEO – Jan 2018

Keeping you informed

I’m often asked by people outside this industry exactly what FPI does. Given how complex the financial services industry is, you might think the answer would be difficult but we think it’s straightforward.

Find out more

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