Brexit

Unpopular fund sector trumps UK funds four years on from Brexit vote

European funds are seldom flavour of the month with retail investors, but four years on from the Brexit vote they have notched up eye-catching returns – with the average fund in the Investment Association’s (IA) Europe ex UK sector up 42.8%.

The sector has comfortably outpaced UK funds, according to research by Chelsea Financial Services, with the IA UK all companies sector up just 14% - over the period of 23 June 2016 to 21 June. 

JP Morgan’s Georgina Brittain: Brexit risk will lead to volatility and bargains

Georgina Brittain describes herself as first and foremost a “bottom-up stockpicker”. She is the manager of various funds, including JPMorgan UK Smaller Companies fund and the JPMorgan Mid Cap and Smaller Companies investment trusts. A barrister by training, her career with the firm began almost exactly 25 years ago when she joined Flemings, which through a series of mergers and acquisitions eventually became JP Morgan Chase.

What is the post-election reality for investors?

Santa rally or election elation? The UK stockmarket posted its biggest gains for more than three years in the week following Boris Johnson’s landslide election victory on 12 December, despite a simultaneous jump in the value of sterling that might have been expected to hit large firms with hefty international earnings.

FTSE 100 surges ahead as investors take advantage of ‘cheap UK’

The FTSE 100 has gained over 2% since the market opened (as of 10am), suggesting that the UK is gradually moving back into favour.

While the main UK index saw relatively decent gains on Friday on the back of the Conservative Party securing a majority, it was outstripped by the performance of the FTSE 250.

The winners from the Boris bounce: domestically focused shares and investment trusts soar

The reaction from markets to the landslide victory for the Conservative Party has been broadly favourable for two reasons: the risk of a Corbyn-led Labour government has disappeared, while the strength of the Tories in Parliament now gives more clarity around Brexit. The Conservative Party have won 364 seats (with one seat left to declare at time of writing), giving them an estimated majority of 78, their largest since 1987.

The best ETFs for Brexit bedlam

Since June 2016 the uncertainty surrounding Brexit has weakened the pound and turned the UK stock market into an uncertain place for investors. Over this period the FTSE 100 index has lagged the MSCI World index by 2.1% a year and experienced around 10% more volatility.

Three ways to spot whether a stock market is ‘truly cheap’

For the past three years, readers of the financial press will have heard countless times that the UK stock market is ‘cheap’. Investors fearing the worst outcome from Brexit, as well as the potential of a Labour government coming to power, have turned their backs on UK shares, pushing the market to supposedly attractive valuations for the more contrarian-minded. This is certainly the view of Richard Staveley, a fund manager at Gresham House Strategies.

UK equities are the Millwall of markets, but fortunes can change

Many football fans of a certain age will remember the ‘knee-trembling’ experience of heading down to the Old Den, Millwall’s former football ground. My first experience there was shortly before they closed it down to move to the slightly less terrifying New Den to watch my team, Watford, suffer a characteristic hammering in February 1993. Walking up the suitably named Cold Blow Lane to the away end, and hearing the famous “No one likes us, we don’t care” from the Millwall faithful, will last long in the memory. The football was less memorable.