06/29/2016

How 'Brexit' affects you and your investments

Britons have voted and the markets have reacted — strongly.  Global experts, economists, and politicians continue to envision what a European Union without the U.K. would look like and vice   versa. At Portico we want to talk about what Brexit means for you. 

The volatile reaction by markets across the globe means that yes, retirement savings that include investments in stocks have declined in recent days. And we agree with the bulk of economists that the uncertainty the U.K. vote creates may cause more market ups and downs in the weeks and months to come.

That said, I want to reach out personally to remind each of you of the strengths Portico offers to help members navigate volatile markets and unanticipated economic events. Consider:

Diversification. This is the backbone of our investing strategy at Portico.  Historically, broad diversification in our investments has helped to mitigate volatility while also providing the opportunity for higher returns in outperforming sectors.  At a high level, diversification among asset classes — stocks and bonds for example — is also important.  Even during the tumult in stocks after the UK vote, bond returns were relatively strong.

Experience. Our investment team has decades of experience and has managed your benefits successfully through other tumultuous times. We also partner with proven outside professionals to actively manage a strong and diversified set of investments.

Education. It is important to know your own investment time horizon and objectives.  We encourage you to review your current investment mix to ensure that it is consistent with your goals.  At Portico we offer several tools to help our members understand their own objectives and to take advantage of our diversified offerings. You can learn more about our funds on myPortico or view our recent webinar on investments that looks at both general investment strategies and the investment options available through the ELCA Retirement Plan. 

With Portico’s support, we hope you will find peace and calm amid the barrage of headlines. You don’t want to panic, making dramatic changes to your investment mix that may be at odds with your long-term objectives.  Our experience tells us that staying the course for the long-term is almost always the best reaction to sudden market upheavals.  We encourage you to take this opportunity to review your current investment mix to ensure that it remains consistent with your objectives.

For more analysis from Portico on Britain’s exit from the U.K. read more.

Peace,

Curt Fee
Vice President and 
Chief Investment Officer
Portico Benefit Services