I’d like to wish you and your family all the very best for the holiday period and 2019, and to update you on how we are managing your money and new developments at Milford.

Over recent years we have experienced consistently good markets. The increased level of volatility since October is a reminder that successful investing is a long-term activity. As an active manager, we had been preparing for market changes and I wanted to share with you the measures we are taking to navigate through this period.

Funds well positioned

For some time we have been reducing our holdings of shares and corporate bonds in favour of cash. During times of volatility, holding increased levels of cash reduces the impact of any future market falls and provides flexibility to active managers like Milford to take advantage of opportunities as they arise.

In line with our more cautious outlook we have been holding more defensive securities. Defensive securities are those with more reliable earnings, healthy balance sheets and stable cashflows and as a result, are more resilient in this type of market.

We have also been using other market instruments which provides protection to our funds. Think of them like insurance policies, which serve to reduce the impact of market falls on our funds, or at other times enhance returns.

Investment team continue to closely monitor markets

In environments such as these, we believe the above approach combined with expert stock selection by our 24-strong investment team provides the best way to navigate markets and quickly realise opportunities as they arise. We have performed extremely well in volatile periods in the past. Our aim is to continue to do so for you, our investors.

CEO announcement

I would also like to take this opportunity to announce I am stepping down as Milford’s CEO at the end of the year to return home to Australia to be closer to family. I have thoroughly enjoyed my time at Milford and am very proud to have been a part of what Milford has delivered to our clients over that period.

Mark Ryland has been appointed as Acting CEO while Milford undertakes a process to appoint a new CEO. Mark is currently our Head of Product & Operations, and has held a number of leadership roles over his 25 years in the industry. There are no changes to the team who invest your money.

Thank you for your ongoing support of Milford which enables us to positively impact our wider community.

Again, all the best to you and your family for the festive season and 2019.