In February 2022, we held our annual investment seminars.

We made the decision to hold these online again this year, due to ongoing COVID-19 restrictions and the continued risk of transmission of the virus. We do hope to be able to take the roadshow back on the actual road again at some point, so fingers crossed for 2023…

This year we had presentations from David Watson, Chair of our Investment Committee, Scott Dakers, Director at Square Mile, and James Stewart-Lockhart, Financial Planning Support.

David provided a review of the performance of our core investment strategies over 2021, all of which provided positive investment returns. Evidence of the success of the risk-targeted approach was clear, as the higher risk strategies gave higher returns than the lower risk strategies, while displaying greater volatility throughout the year. 

He also highlighted the relatively calm nature of the portfolio values during 2021, compared with 2020. Finally, he showed how the approach of blending different fund managers and management styles was also bearing fruit and helping to smooth out and improve returns across different economic cycles.

Scott changed the perspective from looking backwards to forwards and gave Square Mile’s thoughts and views on the outlook for investors in 2022. In the Chinese year of the Dragon, Scott highlighted the four following themes: inflation, interest rates, the ongoing impact of COVID-19 and the race to net zero. 

As an example of just how quickly the world can change, the Russian invasion of Ukraine commenced just as these presentations were being made and so didn’t factor heavily in the 2022 outlook at the time. I’m sure, if delivered again today, the presentation would probably sound a bit different, although none of the original points made by Scott are less relevant today.

And last on the bill - in the space traditionally held for the headline act! – James took to the floor to talk about risk profiling; why it’s important, what impact it has and how we use it. 

James explained that we all take risks every day of our lives, some we’re aware of and take consciously, others we know nothing about and take blindly. When it comes to making decisions about investing your money, the former is preferable to the latter. Open, sensible conversations about the approach to be taken with investment risk leads to more suitable outcomes. 

Cautious investors are less likely to bail out when markets fall, thereby crystallising losses which may be irrecoverable. More adventurous investors can access portfolios which provide the potential for higher returns, provided that they’re willing to accept a more nerve-wracking journey along the way. 

And it doesn’t need to be an all or nothing approach. An investor in their 40s may choose to take higher risk with a long-term investment, like a pension fund, but lower risk with an ISA which is earmarked to help with children’s education costs.

The immediate feedback we received from people who attended the seminars was great, with people taking a lot from the presentations and being given plenty of food for thought. As always, we asked for structured feedback after the event and we’ll take all of this on board when it comes to planning next year’s Investment Roadshows, where we hope to see you all in person!

Get in touch

If you would like to discuss any of the points above, please don’t hesitate to get in touch with myself, a member of the Johnston Carmichael Wealth team or your usual adviser.

Disclaimer: Johnston Carmichael Wealth Limited is authorised and regulated by the Financial Conduct Authority.

While all possible care is taken in the completion of this blog, no responsibility for loss occasioned by any person acting or refraining from action as a result of the information contained herein can be accepted by this firm.