Advisers say clients are holding their nerve following the vote to leave the EU but say the referendum will challenge firms to deliver on the value of advice and investment expertise.
In the wake of last night’s vote, advice firms say clients are not panicking as the wider market and policymakers work out the next steps for the UK’s relationship with the EU.
Investment Quorum chief executive Lee Robertson says: “We are long-term strategic investors, we are not tactical investors. The problems our clients faced yesterday they still face today in planning for retirement, putting their kids through school, passing money through generations. On a 30 or 40-year financial journey, this is just one more bump in the road.
“Our phones have been very quiet this morning. Clients are digesting it, there has been no real panic. Clients understand that we have been here before with 2008 and 2011 and it doesn’t feel like that. We have had a few [calls], particularly from the older clients who worry a bit more because they have less time to make up losses but we are positioned at the defensive end of our equity ranges. Generally, we are keep calm and carry on.”
He says all eyes are now on the Bank of England.
He says: “We need to watch what the Bank of England is going to do. It will be interesting to see if inflation starts to creep back in and that leads to rates rises. What we need now is strong and united political leadership and they should be putting party politics aside for the time being to concentrate on UK plc.”
Page Russell director Tim Page says: “All our clients have plans in place. But it all depends on what out actually means. If it is access to the single market like Norway then most people who voted Leave will be pretty annoyed and nothing much will change. If it’s the nuclear option of free trade then all bets are off and it will takes lots of time to work out where we are.
“The key issue is there is not capacity to deal with this. There are not enough people competent in negotiating trade deals. Who actually is going to do this? It will take a long time.
“The problem is we won’t know for months. So much isn’t going to happen because of the uncertainty and it won’t be resolved for longer than people think.”
Worldwide Financial Planning IFA Nick McBreen says: “Common sense has been thrown overboard. My clients are sensible people but I’m very conscious of hyperbole and media reaction to this.
“We are in unchartered terriority. Markets do not like uncertainty and change.
“Looking at the FTSE it’s not actually down that much and we’ve had volatility for two or three years so that’s not new.”
McBreen adds: “As an adviser we pay people like Richard Buxton and Mark Barnett to buy in expertise and this will sure as hell tell the difference between the good and bad managers.
“That’s what clients pay for – for the experts to have a view and strategy. This is really the value of advice. With the right funds and management house you have to have faith and trust in a sufficiently diversified strategy with tactical overlay. It’s a big test.”