COVID-19 Update from Litman Gregory
March 11, 2020
As we write this message, the week has opened with a plunge in global stock markets following a shock to oil prices (due to Saudi Arabia’s sudden decision to drastically cut prices). This comes after a weekend that saw continued spread of the coronavirus, with communities around the world instituting social distancing measures and quarantines.
We recognize that all this combined with significant market turmoil is highly unnerving and even frightening. We further acknowledge that the full economic and medical effects of this disease are unknowns.
However, what we do know is that panicked investing is never a good strategy, and that we and the sub-advisors of each Litman Gregory Masters Fund are continuing to work diligently on behalf of shareholders.
Update on our business preparedness: We want to assure shareholders that Litman Gregory is prepared for these extraordinary circumstances. We are closely monitoring the coronavirus and have implemented precautionary measures to protect everyone’s health to the maximum extent possible while minimizing disruption to Litman Gregory’s business operations. Our risk-management measures include elevated hygiene practices individually and within our offices, the activation and testing of remote work capabilities for all employees, ensuring up-to-date business continuity plans for all key employees and business functions, an assessment of vendor vulnerability to work outages, and placing limits on employee business travel. Our business-continuity team is closely tracking developments within our local communities and will update the steps we are taking accordingly. Further, each sub-advisory firm has its own business continuity plan that will be implemented as needed will the plans of DST, the funds’ transfer agent and State Street Bank, the funds’ custodian, fund accountants and administrator.
---Litman Gregory Masters Funds