Adviser-to-client template: An update on Iran

For financial advisers to use with clients.

To use this template, simply copy and paste the below text.

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Dear Client, 

Over the weekend, you’ve likely heard of the missile strikes that took place in and around Iran. As a result, we’ve witnessed tragic loss of life and an uncertain geopolitical environment, which we expect will contribute to further market volatility. 

I want to take a moment to assure you that your portfolio is in safe hands, with our investment manager, Morningstar, monitoring market developments closely. The Morningstar team is guided by a set of proven investment principles and taking a long-term view while keeping a cool head in periods of turbulence is central to how they invest. 

Here are some key things to know during this time:

• The US has launched missile attacks across Iran in conjunction with Israel, resulting in the head of the Islamic Republic being killed
• Iran has retaliated with missile attacks on neighbouring countries and Israel
• The stated intention of the US is to remove Iran’s capacity to have nuclear weapons, eradicate its armed forces and remove the existing leadership
• US actions occurred without Congress approval or engagement with the United Nations

What does this mean for your portfolio?

There may be some heightened volatility in markets in the near term. Given the fluid nature of the situation, markets are likely to respond to this uncertainty. In this environment, it is important for investors to maintain a long-term perspective. 

What is Morningstar doing?

Morningstar’s portfolios remain diversified across different asset classes, geographical regions, and investment strategies. This, as well as a preference for flexibility in portfolios, allows them to move where the best opportunities present themselves. 

Morningstar’s investment process has been tried and tested over several years and throughout a range of challenging market conditions, including COVID in 2020, the 2022 market sell-off, and last year’s ‘Liberation Day’ downturn. Through all of these, they’ve maintained a patient and measured approach, and are well-prepared to weather uncertainty. 

Of course, if you have any concerns at all, please do reach out. I’m happy to answer any questions you may have about this event or your portfolio in general. 

Regards, 

Adviser  

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