Brexit expected to boost FTSE 100 share prices

Roughly one in five financial advisers (22.9 per cent) think Brexit won’t boost FTSE 100 share prices and approximately a third (34.7 per cent) are unsure what the UK exiting the European Union will mean for investors in the index.

Keith Richards, Chief Executive of the Personal Finance Society, said:

“The Conservative Party’s general election victory sent the FTSE 100 to its best day in a year with analysts hailing it the ‘Boris Bounce’.

“The majority of the FTSE 100’s profits come from outside the UK. A weaker pound is beneficial for some British companies who sell their products or services outside of the UK as it allows overseas buyer to get more for their money.

“If the value of the pound falls further, many FTSE 100 companies should therefore receive a boost and, in theory, this should push the share prices up, acting as a hedge against Brexit uncertainty. However, we need to remain mindful that a Brexit deal with the European Union has yet to be struck, and any economic optimism we currently feel may be misplaced.

“It is vital that investors speak to a financial adviser to ensure their investment portfolios are capable of meeting their needs.”

ENDS

Contacts

Helen Moore, Communications and Engagement Manager

Helen.Moore@cii.co.uk

T:  +44(0)20 7397 1121

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Reace Novello, PR Executive

E:  Reace.Novello@cii.co.uk

T:  +44(0)20 7397 1113

M: +44(0)78 6732 4170

Notes to editors

The Personal Finance Society’s core objective is to serve the public by guiding the advice profession. It is the leading professional body for financial advisers and those in related support roles. With more than 37,000 individual members, it promotes the highest standards of professionalism by setting the standards for technical knowledge, customer service and ethical practice across the entire financial planning community.

To achieve its aims, the society provides its members to a programme of continuing professional development, relevant qualifications, learning materials, support services and many other practical benefits. Operating under a Royal Charter, its primary objective is to secure and justify public confidence and trust in its membership and the profession more broadly.