Investor Newsletter April 2020
Welcome
I am mindful that at the time of writing my introductory message for our Newsletter that we are in the middle of a pandemic, deeply concerning times for all of us, where every day brings sadness the likes of which we have not seen on these shores for a very long time.
In our September Newsletter, I referred to having seen many ups and downs in the financial markets, including the 2008 Financial crash. The Covid-19 virus which has spread globally has created fear, uncertainty and concern in all of us for the wellbeing of our loved ones.
Seamus Heaney once wrote “If we winter this one out, we can summer anywhere”. This is so true in the context of all the hard work being undertaken so diligently by so many people including our medical professionals, front line personnel and the vast array of volunteers, who are meeting this virus head on, putting themselves at risk, and, in doing so, protecting us with their informed advice and daily updates - we salute all of them.
The Provest team have a strong sense of concern for the welfare of others and are very mindful and acutely aware of the trust you have placed in us with your financial affairs.
Just over three weeks ago, in line with government policy, we implemented our Business Continuity plan to safeguard our colleagues and their families. This strategy also afforded us the opportunity while working remotely, and with the relevant technology, to be able to look after your affairs.
Central Banks around the globe have been quick to react to the Financial market impact. From a European perspective, the chief economist, Philip Lane, has stated that “We will not tolerate any risks to the smooth transmission of our monetary policy in all jurisdictions of the euro zone”, and “we clearly stand ready to do more and adjust all our instruments, if needed, to ensure that the elevated spreads that we see in response to the acceleration of the spreading of coronavirus do not undermine transmission”. The ECB chief, Mario Draghi, has a great track record in dealing with challenging tasks, which he demonstrated in 2012 and must now again consider the decisive action needed to finance the euro governments during this period, something that is likely to occur in other jurisdictions.
Therefore, we need Mr. Draghi to give serious consideration to the future when providing direction, and not dwell on what happened in the past.
Ní neart go cur le chéile.
Best wishes and stay safe,
Mark O’Sullivan
Managing Director
Mark O’Sullivan,
Managing Director