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Cramlington IFA sees portfolios swell on Brexit bounce

Explore Wealth Management, the Cramlington-based independent financial adviser, has revealed that client portfolios have swelled in the last 12 months on the back of a Brexit bounce.

According to the IFA, some portfolios have grown by an impressive 25% in the last 12 months, as the FTSE 100 rebounded after re-stablising in the wake of last June’s shock referendum result.

According to Explore’s Managing Director, Stephen Sumner, despite the initial confusion the Brexit vote has actually been a good thing for the stock market, and for many of his client’s portfolios, with the FTSE 100 enjoying just under 24% growth in the last year.

Those with speculative investment portfolios have saw their interest grow by 25% while even those who have invested more cautiously have seen growth of just over 12% in what Sumner has described as a ‘fantastic year’.

The strong performance of the FTSE 100, which consists of both UK and international firms, can be directly attributed to the fall in sterling which has consequently pushed down the cost of British exports to the rest of the world.

Sumner commented: “The bounce has been caused by a fall in the value of the pound compared to most foreign currencies.

“While this has led to a sharp increase in the price of imports, the upshot of this has been to make the cost of British exports more competitive, so cheaper exports mean more profit, meaning dividend payment and share prices go up and a higher return for investors.

“There is a growing feeling among financial analysts that being a member of the EU has actually held the UK economy back and that the market is likely to flourish when we go it alone, but I suppose we will have to wait and see!”

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