Adviser-to-client template: Insights for a Mid-Year Touchpoint

June 2023

For financial advisers to use with clients. Feel free to copy, paste, then edit as desired.

The text is intended to support your service proposition to clients. It is produced by our investment writers with a deliberately light tone and structure. However, these are guidance paragraphs only. It is not guaranteed to meet the expectations of regulators or your internal compliance requirements. If you wish to remove or amend any wording, you are free to do so. However, please bear in mind that you are ultimately responsible for the accuracy and relevance of your communications to clients.


Mid-Year Outlook: Let’s Keep It Positive

Dear client,

I am writing to keep you informed of your portfolio’s progress. As we enter the back half of the year, you’ll have undoubtedly noticed interest rate pressures continuing to rise, which is meaningfully impacting sentiment.

We’re living in a period where many households continue to struggle from mortgage resets and inflation, but this is offset by a sizeable number of savers (especially retirees) who stand to benefit from the rising rates. From an investment perspective, the net effect so far, is that majority of global markets are still beating cash on a one, three, and five-year basis, according to Morningstar data to 20th June.

We appreciate that investors naturally want to surpass cash returns in all market conditions, but note that cash is effectively a risk-free asset, so this is easier said than done. Investing is about taking appropriate risks when there’s a reasonable expectation for reward. The reality is that investing involves periods of great returns and setbacks. Navigating these in any investment landscape requires a balance between conviction and diversification.

The good news is that your investment portfolio is positioned well leading into the second half of 2023, with a diversified investment mix that is positioned to deliver on your financial goals.

As far as the mid-year outlook goes, we always prefer to look at the long-term perspective first, and any near-term challenges second. In the long term, we have reason to be positive. For example, Morningstar continues to see many investment markets trading at levels that should help you to achieve your goals over time. Your portfolios are positioned toward areas of the market that Morningstar believes will deliver the best long-term returns for the risks being taken.

In the shorter term, we do note several key developments worthy of attention. For example, artificial intelligence (AI) is set to disrupt many businesses and will advance others. Related, we have a highly concentrated group of companies that are having an outsized impact, especially in the U.S. market. We also acknowledge the continued risks of an economic recession if interest rates continue to rise putting pressure on people’s spending.

Owning a portfolio that has several ways to generate returns but also an appropriate level of protection is especially important now, given some of the potential short-term headwinds and longer-term opportunities. With the benefit of hindsight, the direction of the economy will appear obvious, but that is never the case when making investing decisions in real time. A well-structured portfolio must therefore be able to cope with a wide variety of outcomes. This should help make the journey to your goals less stressful, and perhaps even enjoyable.

Therefore, I share three messages:

  • First, if you need advice or a second opinion on any financial matter, please get in touch as we’d be delighted to help.
  • Second, we continue to monitor your portfolio under the surface to ensure it remains fit for purpose and currently have no issues to report. If this changes, you’ll be the first to know.
  • And last, but not least, it is a timely reminder to remember we’re investing to empower your long-term success, with a gradual and consistent approach that has stood the test of time.

Ultimately, it’s easy to overplay the significance of recent interest rate rises and think ‘this time it’s different’. What is particularly interesting is how quickly investment markets turn. We’ve been through worse before and remain positive for the long term.

As always, I’m very happy to explain further. Please let me know if you have any questions.









Important Information

As noted previously, this document is intended to support your service proposition to clients and the commentary does not constitute investment, legal, tax or other advice and is supplied for information purposes only. Past performance is not a guide to future returns. The value of investments may go down as well as up and an investor may not get back the amount invested. The information, data, analyses, and opinions presented herein are provided as of the date written and are subject to change without notice. Every effort has been made to ensure the accuracy of the information provided, but Morningstar makes no warranty, express or implied regarding such information. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or losses resulting from, or related to, the information, data, analyses or opinions or their use.

Since its original publication, this piece may have been edited to reflect the regulatory requirements of regions outside of the country it was originally published in. This document is issued by Morningstar Investment Management Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Morningstar’). Morningstar is the Responsible Entity and issuer of interests in the Morningstar investment funds referred to in this report. © Copyright of this document is owned by Morningstar and any related bodies corporate that are involved in the document’s creation. As such the document, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior written consent of Morningstar. The information provided is for general use only. In compiling this document, Morningstar has relied on information and data supplied by third parties including information providers (such as Standard and Poor’s, MSCI, Barclays, FTSE). Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Morningstar nor its third parties accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Past performance is not a reliable indicator of future performance. Morningstar does not guarantee the performance of any investment or the return of capital. Morningstar warns that (a) Morningstar has not considered any individual person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current situation. Refer to our Financial Services Guide (FSG) for more information at  Before making any decision about whether to invest in a financial product, individuals should obtain and consider the disclosure document. For a copy of the relevant disclosure document, please contact our Adviser Solutions Team on 02 9276 4550.


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