After a challenging year I would like to take a moment to share some thoughts with you all.
2022 has been a remarkably unfavourable year for financial markets with both bond and equity markets performing negatively. In tumultuous times, markets tend to overshoot, echoing in a rather dramatic way the underlying economic and social trends. This was the case in 2021 when we experienced some of the best performances in recent history, and it has probably been the case this year as well.
However, I can still see many reasons for optimism. I believe that some key economic imbalances will normalise in 2023 and markets will anticipate this fundamental trend. We will help you stay the course of your investment journeys whilst focusing on seizing the many opportunities for growth that will arise.
The backdrop is, indeed, some of the most convenient market valuations of the past 20 years. Our long-term expected returns (a metric that we use to estimate asset profitability, yet not a guarantee of future returns) are much better than they have been in the past decade, especially for bonds. I look forward to sharing these insights with you during our annual strategic asset allocation conference that will be held in February.
Turning to Moneyfarm, I am satisfied with the consolidation of our presence in the UK. We have welcomed M&G as a new partner and we have strengthened our expertise thanks to the acquisition of Profile Pensions, one of the UK’s leading digital pension advisers and consolidators. We have exciting news for the coming months as we strive to offer a more extensive platform. Our goal is to give you more flexibility to help you better grasp the many long-term investment opportunities we see in the markets.
The entire team at Moneyfarm is centred on delivering you the highest-quality service and investment experience possible. I am confident that, with all the efforts we put in, 2023 will be a much better year for all investors.
A sincere thank you for your continued support. I wish you and your families a serene holiday season and a great new year.
Kind regards,
Giovanni Daprà
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
