Recent Market Volatility

Recently we have seen some volatile markets which have impacted the values of the investments held by the unit-linked funds. Uncertainties over global growth, inflation, rising interest rates, the conflict in Ukraine and supply chain issues have caused bond and equity values to fall and markets have been more volatile and we do appreciate that volatility in investment markets can be unsettling for our customers.

By way of a reminder, unit-linked funds that invest in assets such as equities and bonds are designed to be used for longer term investments. Whilst it may be tempting to sell when markets fall, deciding the right time to sell is difficult and, for many, continuing to hold for the long term might end up being the right answer. Over the short term funds may fall, especially equity funds which are directly impacted by market volatility. However, historically, investing for the long term in funds that are spread across different types of investment or a range of funds has outperformed less volatile forms of investment, such as cash.

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