Prosperity Portfolio Impact

By Jasper de Zoeten

I would like to start by reassuring you that the overall impact on our portfolio’s is limited. At Prosperity we look at diversification, which limits your exposure to UK and European investments. This is further aided by the fact that a significant proportion of UK and European holdings are placed in larger companies which operate worldwide, further limiting any negative impact. When we are dealing at a global level, the impact of Brexit and our political impasse is minimised.

So why are we still holding UK and European investments in our client’s portfolios?

Brexit has had a negative influence on our market. If you look at other international markets between 2016 and now, they have outperformed the UK and Europe which means that our markets have opportunities at the present. As you are aware whilst we cannot predict the outcome of Brexit, given the current climate any outcome is better than our current position.

With political decisions and outcomes made, this means that companies and the rest of the UK are able to plan for the future again, which should provide a boost in the UK and European markets, hence our rationale to sustain our levels of exposure in them. So, does this mean that when they finally sort Brexit the market will go up? As mentioned before, on a global scale “Brexit” is relatively insignificant. As alluded to, any outcome should provide a positive boost to the market, however this must be considered alongside other events in the world. For example the US–China trade war.

In summary for us here at Prosperity we work with the markets as they are, our plans are designed to take a long-term view and align to our client’s goals. Therefore, we continue to remain focused on our client’s individual long-term objectives, buying quality investments and, monitoring ‘factual’ data that drives the investment managers selection process. We stand by our 2 key principles with our investment advice: 

  1. Suitability – Is the portfolio suitable to our client’s objectives at all times?
  2. Sustainability – Can our clients sustain the risk and volatility in order to try and meet their long-term objectives?

I hope this has given you an overview of the current situation, but please do remember we are here on hand to answer any questions, concerns or queries you may have.