Theresa May鈥檚 departure demands that UK and international investors move to mitigate risks to their wealth, affirms the CEO of one of the world鈥檚 largest independent financial advisory organisations.
The warning from Nigel Green, chief executive and founder of deVere Group, which has $12bn under advisement, follows Mrs May鈥檚 announcement that she is to quit as leader of the Conservative Party on June 7, during an emotional statement outside Number 10.
Mr Green notes: 鈥淭he pound 鈥� the main market bellwether since the UK voted to leave the EU – rallied immediately against the euro and dollar, before giving up its gains, following Theresa May鈥檚 not so shock resignation as Prime Minister.
鈥淭he search for a new Prime Minister is now on and this is likely to bring further political and economic uncertainty for the future of the UK.鈥�
鈥淯ncertainty, typically, causes dips in confidence in the market, meaning that the pound and UK-based assets could be expected to decrease in value as a result.鈥�
He continues: 鈥淚nvestors will be watching the Conservative party leadership contest keenly.聽 The fate of the value of the pound and UK financial assets will be shaped by Mrs May鈥檚 successor.
鈥淭he next PM is likely to be an ardent Brexiter, such as Boris Johnson or Dominic Raab, who could push for a no-deal Brexit. This would cause more downward pressure for sterling, amongst other assets.
Mr Green concludes: 鈥淲ith the uncertainty intensifying due to 鈥楾rexit鈥�, UK and international investors in UK assets should mitigate risks to their wealth by ensuring their portfolios are properly diversified geographically and by asset class and sector.
鈥淓xposure to equities and bonds, from as many different issuers as possible will help safeguard their savings from this uncertainty and take advantage of the opportunities that will inevitably be presented.鈥�
