Britain’s post-Brexit market turbulence showed the need for well-diversified portfolios, according to Alan Durrant.
Harwood Wealth Management’s chief executive said the company’s three portfolios saw very little negative impact in the days following last week’s referendum result.
In fact, Mr Durrant pointed out two of them grew, with the balanced portfolio up by 0.75 per cent and the growth portfolio up by 1.6 per cent between lunchtime on Thursday (23 June) and on Monday (27 June).
The only portfolio not to see any growth was the conservative one, which was down by 0.25 per cent.
Mr Durrant said: “We put a note out to IFAs so they could provide reassurance to their client about this. The power of diversification means you are invested in international stocks, not just in fixed income.
“We have been doing this for a very long time and we have seen plenty of times like this come and go. We build our portfolios for the long-term, not for Brexit, but at times like this you see the benefits of proper diversification.”
Tilney Bestinvest also saw its portfolios grow over the period after the referendum result was announced.
Its defensive portfolio grew by 1.01 per cent, its growth portfolio grew by 1.22 per cent, while its aggressive growth portfolio grew by 1.42 per cent.
A spokesman for Tilney Bestinvest said: “Our asset allocation is diversified in nature and able to withstand market volatility.
“However we would not have such a short term view on funds and the stock market, rather look at it on a longer time frame.”
In the period after the referendum result was announced, the FTSE 100 fell by 6 per cent, though it has since recovered, while the FTSE 250 is down by 7.9 per cent and the pound is down by 10 per cent.
Hargreaves Lansdown was asked for the performance figures for its portfolios but it did not provide them.
