The above chart shows the performance of the Fund’s two main portfolios, net of investment fees, compared to inflation.

We don’t usually include the year-to-date performance (1 January to 30 June 2020) in our newsletters, as it is not sensible to focus on short periods of time as investments are long term. However, because of the impact that Covid-19 has had on the economy, it is pertinent to show the year-to-date performance.

There was a significant market crash in March 2020, with the market falling by almost a third very quickly.

Although there is a small negative return for the year to date, it is quite astonishing to see how quickly the markets recovered.

However, it appears that it is somewhat unlikely that society will be able to shrug off the effects of the pandemic and quickly return to normal life. The healing – medical, economic and even psychological – will certainly take some time.

There is a tendency for people to reduce or delay their spending as a result of the hardships currently being experienced, which may extend the period it will take for the economy to recover.

The World Economic Forum has described the great lockdown as the world’s largest ever psychological experiment, with 2.6 billion people across the world being subject to some form of lockdown.

Remember, the most important thing you can do, is to remain disciplined and keep your savings invested for as long as possible.