China’s Black Monday – why I’m pleased my investments are with Tilney Bestinvest
Written by Carl Turner on September 11, 2015.
The 24th August was indeed a black day for many investors holding equities in China. It had all been going so well in the first half of the year with huge gains recorded on the Chinese markets between January and June, when stocks peaked. It came as quite a shock to many investors when just two short months later billions were wiped off Chinese stocks overnight. Many had been keeping a keen eye on events unfolding in Europe with the Greek crisis and had their eye off the ball with regard to what was happening in Asia.
Fortunately for me, and for Infinity clients, the surprise was not as great for the Tilney Bestinvest investment managers looking after our funds. Why? Because they have access to monthly data on over 85,000 funds which is fed to them constantly by a team of eight dedicated research analysts. This enables them to keep up-to-date on the investment landscape, not just in China but around the world, and readjust their funds if trouble appears to be looming in a particular sector.
Which is exactly what happened in the run up to the China crisis. At Tilney Bestinvest (TBI), concerns were raised about Chinese markets in early July which put investment managers on red alert to monitor the situation closely. By mid-August the Chief Investment Officer decided action was required to mitigate potential big losses and exposure to equities was reduced in all MAP funds with a reallocation of assets elsewhere on two consecutive days.
This preventative action saved TBI’s investors (myself included) from feeling the full, brutal impact of Black Monday. While losses were still made, these were kept to a minimum as a result of swift and proactive asset management. The story was very different for those relying on less well-informed and responsive fund managers or individuals relying on media reports on the situation to adjust their portfolios, which almost always filter down too late.
This goes to prove just how important it is to keep investments both diversified and actively managed. If you feel that you have been short-changed in this regard, perhaps now is the time to switch investment manager. I would be happy to have a no-obligation chat with you about how I could assist you in transferring your offshore investments at no cost.
Contact Carl at email@example.com