Brexit: The long and the short of it
Brexit continues to generate news headlines, but in our recent client call we considered its place in historic events. Our experts outline where it sits in relation to long-term drivers of investment returns and what steps you can take to manage your finances.
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Lord Waldegrave, Coutts Chairman
Monique Wong, Executive director, Portfolio Management
Sven Balzer, Head of Investment Strategy
Great institutions think long term
Coutts Chairman, Lord Waldegrave of North Hill, invited clients to consider the extraordinary events that have occurred throughout the bank’s history.
“During the history of Coutts there have been far more dangerous events than this. King James II fled the country because the opposition, with help from the Dutch secret service, imposed a new king on us, for example, and threw the Great Seal into the Thames in order to try and stop executive government altogether.
“There have been world wars, and habeas corpus suspended before and after the Napoleonic wars because we feared revolution, and perhaps came quite near to it. Coutts takes the long view, and so should we all.
“The Supreme Court decision has annoyed some people and was surprising to many judges, including the Lord Chief Justice and the Master of the Rolls, and others with whom they disagreed. But, it showed once again the strength of the rule of law in this country. We have very strong institutions in the UK built over many hundreds of years, and one of them is Coutts & Co.”
stay ahead of opportunities
Sven Balzer, Head of investment management, explained that Coutts investment strategy is focused on longer-term drivers of investment returns but that we also keep a close eye on short-term factors.
“From an investment and economic point of view we look at longer-term trends and analysis.
"A long-term global theme we are currently focused on is the topic of fiscal spending and fiscal stimulus. If you look across the Atlantic, you can see that trend there. Democratic candidates are all profiling themselves along these lines.
“And this has happened in the UK as well, with all parties underlining the degree that they want to increase fiscal spending. So that is going to be a long-term theme that will definitely have an impact on our view on bonds for example.”
When investing, past performance should not be taken as a guide to future performance. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.
While the Brexit process is causing substantial political noise, it’s important to understand it from a longer-term perspective. It is not the first – or even the worst – constitutional crisis Coutts clients have faced in the bank’s 300 year history. And its impact on your finances is likely to be less profound than longer-term factors driving the global economy. The most powerful action you can take is to ensure you have a sound financial plan in place to preserve and grow your wealth.
About Coutts Investments
With unstinting focus on client objectives and capital preservation, Coutts Investments provide high-touch investment expertise that centres on diversified solutions and a service-led approach to portfolio management. Our investment process is as disciplined as it is creative – ensuring tailored solutions with robust results.Discover More About Coutts Investments