Introduction

The lighter nights are very welcome, gardens are beginning to look colourful, however, there is one big difference this year: Coronavirus. We are deeply sorry if you and your family, or someone you know, has been affected; these are worrying times for all of us.

This pandemic is sweeping the globe and our lives are changing as a result. It is only natural that we are all feeling a little scared as we navigate uncertain and unknown territory.

We thought it would be helpful to let you know how Autus is operating during this time, along with sharing some of our thoughts with you about the potential financial implications that may lie ahead as a result of this crisis, and what (if any) action we recommend you take.


A new normal

We are now all familiar with the phrase 'social distancing' and how important it is. This has led to the team at Autus changing where we work. The office is still open each day, but with just one person 'holding the fort' at any time. The rest of the team are working from home. We have been busy setting up systems to accommodate this change.

As you will expect, we are unable to conduct 'in person' meetings for the time being, but we can hold the next best thing; a 'virtual' meeting online. Feedback so far has been very positive, and most people have been surprised just how simple and effective it is. That said, we can always simply speak over the phone if you prefer. As and when you are due a meeting, a member of the team will be in touch and you can decide on the best way forward.


What lies ahead

The Government are telling us every day that things are likely to get worse before they get better. This message relates to the initial health crisis that is unfolding, though it is also preparing us for an uncertain and rocky road that lies ahead financially for the world.

Many people are facing tough times; be it losing a loved one, facing a business closure, a fall in earnings, or general disruption to life. From a financial perspective we think our order of concern is broadly:

1. Personal liquidity. Will I have enough money to see me and my family through? We always advocate holding an emergency cash reserve to provide for the unexpected. Though for those reliant on the ability to continue working, these are testing times indeed. We have previously summarised the unprecedented measures taken by the government, which will provide welcome support to many. 2. Invested capital. Your investments and pensions under our care are invested in an appropriate portfolio that is fit for purpose through all market cycles. As such, unless you need to realise capital to provide for your family, we don’t need to react to this latest crisis, we're already correctly set up. 3. The wider economy. Quite simply, it is possible that we are entering a recession. This is part of the normal business cycle; painful but nothing unexpected.

We explore these latter two issues in greater detail in the sections that follow.

From a more general viewpoint, in these difficult and uncertain times we do have a lot to be thankful for. Already we have seen our nation come together. Everyone at the NHS and all key workers are demonstrating some of the best humanity has to offer. People are volunteering to help in any way they can, and many acts of kindness are happening each day.

As always, please do not hesitate to get in touch if you have any questions. We are here to help and support you in any way we can.

We hope you stay safe and well.