BoJo election prompts exit from UK assets
Clients, both in the UK and internationally, are seeking to reduce their exposure to UK assets in light of the approaching Brexit deadline, according to financial advisory group deVere Group.
The firm, which has $12 billion in assets under advisement, said its advisers had seen a 35% increase in UK domestic and international clients seeking to reduce exposure in UK pensions, bonds and sterling. The only exception they were willing to hold onto was UK property.
Since Johnson was elected on 23 July, the FTSE 100 lost 0.4% in Australian dollar terms, although it was up 3.7% over the last 12 months. The ASX 200 lost 0.08% over the same period but was up 12.2% over one year, according to FE Analytics.
Chief executive Nigel Green said: “Investor returns are impacted by serious geopolitical upheaval, especially when in a major economy such as the UK’s, and as such a growing number of those who are serious about building and safeguarding their wealth are exploring legitimate overseas options.
“Unless the toxicity surrounding Brexit stops – which at the moment seems most unlikely – investor confidence will continue to decline and even more British domestic and international investors with exposure to UK assets will continue to move assets away from the UK.”
The UK Parliament was suspended this week and is due to be suspended until 14 October, with the UK due to leave the European Union on 31 October.
AUTHOR
Laura Dew
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
