Post-Brexit vote portfolio performance still robust

The managing director of Wirral-based Phillip Bates & Co said despite the immediate short-term shocks in the days after the UK voted to leave the European Union, performance has been strong across their range of client portfolios.

Mr Mellor said a "comprehensive" fund review had been completed by the firm, which showed the majority of underlying funds within the portfolios have been continuing to meet the clients' objectives.

On Monday 27 June, days after the result of the EU referendum was announced, the FTSE 100 and the FTSE 250 both saw billions wiped off their face value as a result of market uncertainty.

However, since then, markets have rebounded strongly, with Hargreaves Lansdown stating in August that the FTSE 100 had entered into a "technical bull market". 

Good financial planning is about looking at the long-term and ensuring that our approach to investment is sufficiently flexible Alan Mellor

Mr Mellor said: "We delayed our most recent fund review in order that we could fully assess the impact of the Brexit vote.

“We wanted to consider the investment markets and how we should react to this change.

“Returns post-Brexit have been positive with the vast majority of the funds in which we invest continuing to meet our objectives.

“The FTSE100 has performed strongly, nearly exceeding its all-time high, while overseas investment markets have also done well as a result of the fall in the value of the pound.”

Although Mr Mellor admitted there would be some "difficult times" ahead, not least with the ensuing uncertainty which is likely to remain as the UK negotiates its departure from the European Union, but he was "optimistic".

He explained: "I am optimistic regarding the processes we have in place to meet the needs of our clients. 

“Our investment approach is always individual to each client, although inevitably there are similarities between many of our clients.

“Good financial planning is about looking at the long-term and ensuring that our approach to investment is sufficiently flexible to meet differing economic circumstances and adaptable enough to mitigate risk wherever possible.”

This came as markets were rattled by comments made by Prime Minister Theresa May and her new chancellor Phillip Hammond at the Conservative Party Conference. 

Both cited a period of economic "turbulence" as the UK negotiates its departure from the European Union.

On Monday 3 October, sterling fell to a new three-year low after Ms May announced that Article 50 was to be initiated in full by the end of March 2017, with a full Brexit. This caused the pound to slide 0.9 per cent weaker against the euro.

Meanwhile, Mr Hammond told the conference to expect "fiscal uncertainty" and warned his forthcoming Autumn Statement would be ready to take "pre-emptive" action in case of a sentiment-driven downturn among UK businesses.