Investors warned over 'unpredictable' BoJo
The ‘unpredictability’ of UK Prime Minister Boris Johnson means investors need to be alert for volatility in any UK exposure they may hold.
Johnson was elected PM this week, replacing outgoing PM Theresa May, but has a reputation for unpredictable and disorganised behaviour. During his election campaign, he also put forward the idea of the UK leaving the European Union in October without a deal in place, a so-called ‘no-deal Brexit’.
Nigel Green, chief executive of financial advisory group deVere Group, said this was yet another issue alongside Brexit and the slowing economy that would affect investors.
“Britain’s political shake-up with its unpredicatable new Prime Minister, the ongoing deadlock in parliament, the slowing economy, the possibility of another General Election, the increasing likelihood of crashing out of the EU with no-deal or another extension to Brexit, among other issues, will contribute to this becoming a volatile few months for investors in UK assets.
“With sterling and UK assets to be directly and indirectly impacted by Johnson’s decisions, investors need to monitor the developments carefully.”
He said the firm had already seen clients seeking to exit their UK holdings since the 2016 referendum result and that he expected this trend would continue in the run-up to the 31 October Brexit deadline.
Instead of UK holdings, he suggested global equities, bond and property assets.
AUTHOR
Laura Dew
Recommended for you
Milford is to launch three funds following consultation with financial advisers while closing two other strategies which hold a small volume of assets.
A founding member of fund manager IML is to depart the firm later this year after 27 years.
Magellan Financial Group reported outflows of $0.5 billion in February but saw a slight increase in its infrastructure division despite the exit of head Gerald Stack.
The global investment manager has unveiled two new diversified ETFs on the ASX targeting the next generation of Australian investors.
