Investment Strategies

This wasn’t on the cards. Once again, opinion polls, bookmakers, analysts and experts alike have called it wrong. Trump’s ascendency and the manner of the victory mirrors the sentiment expressed by UK voters in June to leave the EU. People are no longer happy with the status quo and are voting for change in an overwhelming manner. It is difficult to predict how Trump’s policies will impact the US and indeed global economies. What we can be more certain of, however, is that uncertainty and change are the order of the day. This has implications for key European elections in 2017 as we consider the rise of anti-immigration, right-wing parties in Europe.

The fall-out and analysis of the US election are likely to continue for some time. Although the financial market reaction thus far has been relatively positive, especially when compared to the reaction to the Brexit result earlier this year, we feel the market reaction may be complacent and investors are yet to fully appreciate the implications of global growth, geopolitics and in turn, asset prices.

We would advocate that investors avoid making knee-jerk reactions to events impacting financial markets in the short term. Investors committed to long-term investment strategies, with a well-structured portfolio and the ability to ride out the periods of volatility should be rewarded in the long run. The MSCI Global Developed Market benchmark fell by 5% in a single day after the Brexit result on the 24^th June 2016. The benchmark has since recovered its losses (as at close of business last night, 08/11/2016). Long term investors can miss out on market returns by trying to time markets, which can prove difficult in periods of high volatility.

BlackBee Products 

At BlackBee, we have structured a collection of products which can allow investors participate in long-term returns, while also providing protection against market volatility and sharp reactions to short-term events.

• BlackBee’s innovative Twin-Win feature provides exposure to thematic and researched investment ideas while providing capital protection barriers on the downside and the ability to generate positive returns in a variety of market conditions.

• Our 90% Protected Bluechip range provides 90% capital protection with the ability to generate uncapped positive returns on the upside.

• BlackBee’s Income Builder range has been created to provide guaranteed income in Euro and Sterling over short term investment periods while also providing a deep capital protection barrier of 55%.

• We have also relaunched our Fixed Income Note, which provides a fixed return over a medium investment term with return of capital at Maturity conditional on the Guarantor and the Reference Entity.

We are excited to offer a broad range of investment options, each of which has been structured to provide real returns and varying elements of capital protection while retaining the ability to generate positive returns in a variety of market conditions.