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Brexit ISA: How your portfolios are prepared for Brexit

Updated Friday 29 March 21:49

Whatever your views on Brexit, the uncertainty it’s currently casting on the future unites us. The unknown can be uncomfortable, and force investors into making decisions that can take them off course from reaching their long-term goals.

Moneyfarm’s Brexit ISA campaign highlights that whilst time might change – whether it’s Brexit, interest rate policy, or trade tensions – a good investment strategy doesn’t need to.

Led by Chief Investment Officer Richard Flax, the Moneyfarm portfolios are built and managed by our Investment Team to make the most of global investment opportunities whilst minimising risk, in line with your profile.

Portfolio management involves continuous monitoring of the global financial markets, which includes understanding how the latest twists and turns in the current deadlock could play out, and what impact this could have on your portfolio.

What we know about Brexit

Put simply, the saga continues – and we’re little closer to understanding how Brexit will play out.

Prime Minister Theresa May’s Brexit deal suffered its third defeat in Parliament on the day Britain was originally set to leave the European Union. The chance of a No Deal has increased in the eyes of many, with the UK set to leave on 12 April, with or without a deal.

It’s widely expected that Theresa May will go to her European counterparts and ask for a longer delay, however.  And it’s likely this plea gets the nod from the 27 other European Leaders

The options for the final Brexit outcome are still broad. A softer Brexit could be on the cards, a General Election, or even a second referendum.

Eyes will turn to Westminster again on Monday, as MPs try to form some sort of consensus around alternative plans to May’s deal. Support could strengthen around the customs union and single market. MPs could then try and get the Prime Minister to adopt this plan B.

The events of 29 March

If May had finally won support for her deal, she’d have paved the way for the UK to leave the EU on 22 May.

It was always going to be a tough sell and the Prime Minister would have needed some support from the Labour benches to get her way. The DUP refused to accept the deal, as it contains the contentious backstop plan.

However, Labour had also refused to back what it called a Blindfold Brexit. To get around John Bercow’s ban on putting the same motion to vote three times, the Prime Minister has removed  the political declaration on future policies from the debate. This means MPs were just be voting on the 585-page withdrawal treaty.

Investing during uncertainty with the Brexit ISA

As we countdown to the end of the tax year, Brexit is the elephant in the room. We know investors are looking to make the most of their tax-free allowances before 6 April, but uncertainty on the political stage is either delaying decision making or encouraging people to diverge from their original investment strategy.

Our Brexit ISA campaign isn’t a bet on Brexit, nor are we taking a political view. At Moneyfarm, we firmly believe in transparency. You should understand your investments, how potential risks can impact your portfolio, but also how our investment strategy aims to deliver you long-term growth.

We know our customers are investing in the real world for their real futures. It’s our job to ensure your financial future doesn’t get delayed with the Brexit deadlock.

Moneyfarm’s ISAs are built to manage risk of changing times in the right way for our customers. We do this through:

 

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By making an investment, your capital is at risk.
  • Global diversification

 

Moneyfarm’s carefully constructed portfolios are built to maximise growth and minimise risk from across the globe, in line with your investor profile.

 

  • Expert management

 

Our investment experts carefully manage your portfolio to help your money grow, reflecting your investor profile and risk appetite.

 

  • Good value

 

Good value is built into Moneyfarm’s investment philosophy. By keeping costs as low as possible, without sacrificing on the quality of our service, you get to keep more of your money and maximise your returns over the long-run.

How Moneyfarm Portfolios are prepared for Brexit

Whilst it’s hard to escape Brexit, it’s one of a number of factors that go into building a global portfolio.

Global diversification is one of the key tenets to our Investment Strategy. Our Investment Team want the Moneyfarm ISA portfolios to have a broad range of exposure to a number of different investments and regions of the world, in line with your appetite for risk.

The main way we have prepared portfolios for Brexit is through sterling. By increasing our sterling exposure we aim to mitigate the impact of currency volatility. This isn’t to bet on one outcome or the other, but to manage the risk of the portfolios properly.

It’s important to remember these portfolios are built for the next ten years, not the next few weeks. Within this time frame, there are a number of opportunities within them.

To talk about how the Moneyfarm portfolios are prepared for Brexit or to discuss the impact Brexit could have on your ISA or Pension, please call our Investment Consultants on 0800 433 4574, and out team of Investment Consultants will be happy to help.

Opening times

If you have any questions about how your portfolios are prepared for Brexit, or the potential impact of Brexit on your portfolio, please get in touch with our Investment Consultants on 0800 433 4574, who are available to talk through any questions you might have.

We’ve extended our opening hours as we get closer to the tax year. Remember your money must be in your ISA by 3pm on 5 April for it to count in this year’s ISA allowance.

Saturday 30 – Sunday 31 March: Open 10am – 4pm

Monday 01 – Friday 05 April: Open 9am – 9 pm

Saturday 6 April: Open 10am – 4pm

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