UK recession will prompt investors to consider overseas options
August 12, 2020 (Investorideas.com Newswire) A growing number of UK and global investors are likely to move their assets overseas as Britain enters its worst recession in history, affirms the boss of one of the world's largest independent financial advisory and fintech organizations.
The observation from Nigel Green, founder and chief executive of deVere Group, which has $12bn under advisement, comes as it is revealed that the UK economy suffered its biggest drop on record between April and June as coronavirus lockdown measures pushed the country officially into recession.
The economy contracted by 20.4% compared with the first three months of the year.
Mr Green notes: "As was expected, Britain is now officially in recession. It's the deepest recession in UK history and the deepest of any G7 country.
"Whilst the economy grew 8.7% in June, which beat economic estimates, and confirms a recovery is now underway, the real test will be after the summer when there are no more national lockdown-easing measures to lift the economic spirits, more local restrictions are likely to be imposed and as significant programmes such as the furlough scheme which has protected jobs come to a halt.
"All of this creates ever more uncertainty in the UK economy."
He continues: "UK and global investors will be becoming increasingly nervous of this worrying situation and can be expected to take precautionary measures to insulate themselves against a potential fall in the value of UK-based financial assets.
"A growing number inevitably and quite sensibly are likely to be looking to grow and safeguard their wealth by moving assets overseas through various established international financial solutions.
"The pace of this trend, I believe, will increase over the next few months as the issues intensify."
The deVere CEO goes on to add that the confirmation of a recession "may be a good excuse to start that much-needed rebalancing in favour of global stocks, bonds, currencies and perhaps property."
The weak economy also further boosts the chances of tax hikes and relief cuts in the UK November Budget.
"It is highly likely taxes will rise and reliefs be cut. Possible targets for hikes could include income tax for higher earners, capital gains tax, inheritance tax, and VAT.
"In addition, new wealth taxes may be brought in, which was something the Prime Minister was considering before the pandemic hit," notes Mr Green.
These potential changes in the Budget can be expected to prompt those overseas with financial ties to the country, to look into the international options available to them.
He concludes: "Now could be a good time to revise your financial planning strategies to ensure you're best-positioned to be able to grow and protect your wealth."
t: +44 207 1220 925
deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com