Stay Invested, Stay Informed. Manage Risk for the Long Term.

Following a historic week for global markets, the world is experiencing a lot of unknowns and uncertainty. As a financial advisor, you monitor headlines to help your clients navigate financial implications of COVID-19, while helping them maintain long-term perspective. All investments have risk; managing and mitigating that risk with a long-term mindset is what differentiates your practice.

Right now, there’s a lot of noise to distract clients from their long-term financial plans. While intrinsically we know that clients shouldn’t be watching accounts minute-by-minute, market alerts that keep us in-the-know can also trigger emotional reactions. Investors are being barraged by market updates, reacting to market moves, and looking to understand the implications to their portfolios. Financial advisors can help clients stay focused on strategic allocations through these times of uncertainty.

As a financial advisor, have you talked to your clients about risk-managed solutions? Over communication in market uncertainty can be a welcome reminder that you have a client’s long-term interests in mind, especially as headlines hit consumer confidence.

Risk is the only certainty in uncertain times. What can you do to manage it?

Be proactive, not reactive, to market chaos with long-term perspective.

There are products that exist to help you manage risk and help your clients stay invested. Structured investments are one such product designed to help. Linked to the performance of an underlier (e.g., a stock or an ETF), they come in a variety of product types, with several options to help protect against uncertainty. In periods of market fluctuation, they can offer features to limit equity exposure risk while enabling investors to plan for potential upside in the long term. Take Market Linked Growth Notes* for example, which can be designed to provide various protection levels that can absorb a fixed percentage, let’s say 15–20%, of an underlier’s loss, while simultaneously providing upside if there are gains in the underlier. Products like these give investors a chance to stay in the market and choose how much protection they need to feel most comfortable while keeping them invested for brighter days ahead.

Want to learn more? Be sure to follow us on LinkedIn. If you’re a financial advisor, contact us for a demo and if you’re an investor, ask your financial advisor about SIMON.

SIMON is a cloud-based, desktop accessible solution keeping advisors on track through market uncertainty. With tools and analytics to help you manage portfolio risk with confidence, SIMON helps financial advisors stay informed on risk-managed solutions, so they can stay focused on their clients.

*As a risk-managed solution, a typical structured investment in the form of a Market-Linked Growth Note will offer some amount of downside protection that will absorb a fixed amount of losses, in exchange for capping upside returns based on the performance of an underlier and exposing the holder to the credit risk of the issuer. Market-Linked Growth Notes are buy-and-hold investments, which means that an investor must hold the product until maturity in order to receive the return of principal and any investment returns, and there is no guaranteed secondary market. Taking time to understand the product features and risks of any investment option, including Market-Linked Growth Notes, is critical to building a successfully diversified and well-constructed investment portfolio.

©2020 SIMON Markets LLC. All Rights Reserved. Views expressed only represent the current views of the author as of the date appearing on this material, and are not those of SIMON Markets LLC, unless otherwise expressly noted. This is not intended to be an offer or solicitation to purchase or sell any security or to employ a specific investment strategy. Securities products and services offered by SIMON Markets LLC, a broker-dealer registered with the U.S. Securities and Exchange Commission, a member of FINRA / SIPC. Annuities and insurance services provided by SIMON Annuities and Insurance Services LLC. Please visit www.simon.io for complete disclosures, including terms of use and privacy policy.