First of all, in this difficult time, we hope that you and your family are well and continuing to manage through this extraordinary and tough period.

We continue to see significant volatility in global equity markets with large daily falls and gains seemingly now the norm. With this in mind, it is really important that you think twice before taking any action over your pensions and investments.

European markets followed the US market on Friday (24 April 2020) falling on the back of the news that Gilead Sciences’ drug remdesivir did not improve patient’s condition or reduce the coronavirus pathogen in their bloodstream.

Markets fell by between 1% and 2%.

In contrast, the United States markets bounced back in late trading, ending the week on a note of relative calm, up over 1% after President Trump signed another $484 billion stimulus package to support small businesses.

Whatever you are invested in, we’d like to remind you about the following key principles.

1. Stay invested – as you have seen global equity markets fall and the value of your own investments fall as well, it is natural that some of you will be thinking whether you should sell your investments and move to cash or some other “safe haven”. Our strong message to you is stay invested, focus on the investment objective that you set with your Financial Adviser at outset and trust the process. History shows that as night follows day, global equity market recoveries follow global equity market falls and it is damaging to miss out on the recovery days. The following chart shows the performance of the FTSE All Share between 30 September 1998 and 31 March 2020 and the impact if you missed the 10 best days. The cost of missing these 10 best days would have been over 3% a year (Source: Omnis Investments).

2. Understand your attitude to risk – we know that you will have discussed your Attitude to Risk and your capacity for loss comprehensively with your Financial Adviser. We are delighted that this process appears to have really worked during this extremely short-term volatile period.

If you are a Cautious or Balanced investor, you have been protected from the extreme falls of global equity markets. In fact, if you look at the average of all Cautious funds in the market (using the IA sector – Mixed Investment 20% to 60% Shares), a typical Cautious investment will have fallen by between 5% and 6% over the last 12 months, compared to the FTSE 100 which has fallen by nearly 20% (Source: FE Analytics as at close on 24 April 2020).

For Balanced (using the IA sector – Mixed Investment 40% to 85% Shares), a typical Balanced investment will have fallen by just over 6% over the last 12 months (Source: FE Analytics as at close on 24 April 2020).

3. Diversify your investments – if you are invested in Openwork recommended investments in line with your Attitude to Risk like the Openwork Graphene Model Portfolios, Openwork Portfolio of Funds and Prudential PruFunds, your investment is diversified which means it invests in a wide range of different asset classes.

Different types of investment (asset classes) and regions of the world all perform differently. Diversifying your investment by spreading it across many different asset classes and regions of the world means that, when certain segments aren’t performing as well, others in your portfolio are likely to be doing better and so will help protect the value of your overall investment.

4. Buying low – when you invest, you are always trying to buy low and sell high. For many, now may be a good time to consider increasing your investment. While trying to time a market bottom is difficult, history tells us that you do not have to wait long, if you invest slightly before the bottom, before your investment is back to its original value. As the chart below shows, investing 5% before the market bottom has, on average, added just 3 days to an investor's recovery period.