The Milford team continues to actively manage your investments through the ongoing developments relating to the coronavirus (COVID-19). We have been positioning your investments to cushion the impact of volatility, particularly in sectors heavily exposed to the potential economic impact of the virus.

After markets were initially slow to react, they have responded with increased volatility over recent weeks. Since we last wrote to you, the situation has been compounded by the significant fall in the oil price, largely caused by the emergence of a likely oil price war. Markets have reacted swiftly and in episodes of volatility such as this, it is likely that we will continue to see large swings in markets in both directions.

We adopted a cautious approach prior to this period of volatility and during early February reduced exposure in the funds to key sectors likely to be affected by the economic impact of the virus. We have low relative exposure to sectors such as oil, banking, travel and tourism. Our team of 28 investment professionals is focussed on closely monitoring the spread of the virus, the economic and financial impact, changes in related markets and government responses.

We will maintain our patient and disciplined approach as we navigate through the current volatility. Whilst not immune to the volatility, our defensive positioning with significant cash holdings allows us to cushion the impact and to respond to buying opportunities as they arise.

We recognise that seeing negative short term returns can be unsettling and encourage our investors to focus on the long term, recognise the benefits of staying the course, and speak to us should you need to find out more or understand our latest positioning in our funds.

The Milford team invests in the same funds alongside you, have many years of collective experience in managing through periods of volatility and will continue to work hard to deliver the best outcome for our clients in the funds over their specific time horizon.

If you would like to discuss anything further please get in touch with the team.