Investors in UK financial assets need to be “aware and alert” as Boris Johnson pursues his agenda as Britain’s new Prime Minister, the CEO of one of the world’s largest independent financial advisory organisations has warned.
The warning from Nigel Green, founder and chief executive of deVere Group, which has $12 billion under advisement, comes as Mr Johnson made his first statement to parliament as PM, having addressed his new cabinet ministers for the first time.
“Financial markets – and therefore investor returns – are often driven and influenced by geopolitical factors," Mr Green said.
“Britain’s political shake-up with its unpredictable 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 many other issues, will contribute to this becoming a volatile next few months for investors in UK assets.
“There will inevitably be winners and losers as Mr Johnson’s administration policies and ambitions are pursued. As such, this is a time for investors to be aware and alert to mitigate the risks and take advantage of the opportunities as they arise.”
A survey carried out by deVere in May found more than 20 per cent of clients had sought advice on moving UK assets out of Britain since the Brexit vote in 2016.
Now, with the Brexit situation likely to intensify in the run-up to the 31 October deadline, the deVere CEO expects the pace of this trend can be expected to pick up over the next few months.
“A growing number of domestic and international investors in UK assets will respond to the uncertainties by considering removing their wealth from the UK," he said.
“For many, the current landscape will be a good excuse to start a rebalancing in favour of global equities, bonds and perhaps property.
“With Sterling and UK assets to be directly and indirectly impacted by Boris Johnson’s decisions, investors need to monitor the developments carefully in order to create, build and safeguard their wealth."