Brexit advisers’ main cause for concern in generating investment returns

Brexit poses the main challenge to advisers in delivering investment returns over the next five years, research from Prudential shows.

The firm, which surveyed advisers ahead of Article 50 being triggered today, found that 84 per cent of advisers are concerned about the implications of Brexit on five-year investment returns while 66 per cent worry about the market being overvalued and falling as a result. Over half of the advisers (58 per cent) think there will be a medium-term market correction.

As such advisers are recommending multi-asset investment products, mainly for their global reach, with 70 per cent offering them to clients.

A further 63 per cent of advisers are worried about income generation over the next five years and 55 per cent are concerned about ongoing low interest rates.

Vince Smith-Hughes, investment expert at Prudential, says: “Brexit is overshadowing all other investment planning issues and highlighting the need for solutions which can provide protection and the possibility of strong returns.

“The triggering of Article 50 will provide some certainty for financial planning but will continue to highlight the need for solutions and advice which can support individuals in achieving their investment goals in the short to medium-term.”