Two thirds of advisers not concerned by Brexit

A total of 95 advisers were polled online and at Russell Investments adviser events in London, Glasgow and Birmingham. When asked what impact ‘Brexit’ would have on both their business and clients, only 36% of advisers believed it would have a negative impact. Over 64% of advisers thought that the result would have either no impact or a positive impact.

In keeping with the regional split from the Referendum result, London-based and Scottish advisers were the most negative on the outcome, at 34% and 31% respectively. This compared to 25% in Birmingham. Online polling gave a different picture however, with 55% of votes cast for a negative outlook.

Among the reasons provided for a positive outlook, a Birmingham-based adviser commented that they had ‘spent a great deal of time educating clients about diversification and this has paid off [in the case of Brexit]’.

The timing of the UK’s break from the EU was an unknown, but advisers noted that it would be a positive outcome ‘eventually’, with a London-based adviser commenting it could take ‘five years plus’, but that it would be positive over the long term.

Advisers polled also said that it provided a reason to contact their clients again, with a Birmingham-based adviser noting that now was a good time to ‘contact clients in order to reassure and review the plans that were put in place [in their portfolios]’. Expect that call.

Commenting on the survey findings, Nick French, managing director and head of UK Wealth Management at Russell Investments, said: “The timeline and logistics around Britain’s exit from the EU still remains unclear. However [investors need to] understand the effects each scenario could have on their investments.

“It is difficult for personal investors to completely overcome the intrinsic link between their emotions and their money. In times like this is it easy to overanalyse the scenarios, when what clients really need is plain English. Clear financial advice which separates the emotion and hysteria from the events is valuable in helping to avoid bad investment decisions which can impact portfolios over the long term.”