Financial advisers can quell clients’ post-Brexit hysteria by guiding them through the cycle of market emotions, according to Nick French of Russell Investments.
Emotions can cause clients to lose focus of the important areas of their financial plan, which could prove detrimental to their portfolio, said Mr French, head of UK wealth management at the fund house.
He added that human emotions were a significant driver of financial markets.
“It would seem that ‘once in a lifetime’ events seem to happen every year. There always seems to be misinformation and a degree of confusion before or after these events occur – but life goes on.
“There is a lot of noise out there about the state of the UK market following the vote. It is important to be aware of the noise, but do not make knee-jerk reactions – they cause the biggest harm to investment pots.”
Mr French advocated arranging a meeting with clients to explore how their existing financial plans stand up to heightened economic pressures, and exploring other investment avenues to achieve the target return if necessary.
He said advisers could further educate their clients on the affects of different market conditions by utilising investment tools that illustrate how investments in specific sectors made at different time periods in history fared.
On the impact of advisers’ innate bias on Brexit, he said: “There is always going to be an element of subjectivity in financial advice, but the industry has a responsibility to provide accurate information in a calm and collected manner.”
Mr French is due to speak at the FA Masterclass, Calming Clients Post-Brexit, on Tuesday 20 September 2016. The event, sponsored by Russell Investments, will be held at DoubleTree by Hilton Hotel Edinburgh City Centre. Mr French will be joined by Brian Steeples, managing director of advisory practice, The Turris Partnership and Neil Winstanley, an IFA at Bellpenny.
The event includes breakfast, an insightful event, and to end the morning, a buffet lunch. There will be a copy of the Financial Times for all attendees, and for the first 25 to arrive a Financial Adviser golf umbrella worth £50. To attend email Claire.Harris@ft.com