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Brexit and your money

Farrbury Capital | June 11, 2019

However you choose to make your money work for you, it’s likely that Brexit has had some impact. Property investors, particularly in London and the South East, have been feeling the effect, while those who prefer to put their money into stocks and shares have undergone numerous market wobbles as a result of the ongoing uncertainty.

The announcement of a Brexit delay to 31 October 2019 has extended that period of doubt, with the Financial Times reporting that “the prospect of prolonged uncertainty and Brexit fatigue muted investors’ appetite for sterling” in the aftermath of the announcement.

“Market fluctuations and geopolitical events can cause serious headaches for investors, particularly at the moment when we have the UK’s unprecedented withdrawal from the EU to contend with, along with the regularly moving goal posts that that entails. As such, many investors are seeking alternative investment products that can free them from being at the mercy of such instability.”

James Hayward, Investment Director, Farrbury Capital Partners

Loan notes are one such option. Many investors are looking at them as a potential alternative to other forms of property investment, such as buy to let, and to stocks and shares (you can click here to take a look at how these forms of investment compare).

Drop in house prices of 0.7% in Q1 2019 for the first time since 2012.

According to Nationwide

Suited to sophisticated investors and high net worth investors, loan notes deliver many of the advantages of property investment, minus the vulnerability associated with falling house prices. At a time when annual house prices have fallen in England for the first time since 2012 (according to Nationwide, which reported a drop of 0.7% in Q1 2019), investment options that take a step back from being too closely pegged to the market are becoming more attractive to professional investors. In this situation, loan notes can provide the ideal solution.

“Making your money work for you has certainly become more interesting as a result of the UK’s 2016 decision to leave the EU. There are still plenty of ways in which to grow your capital, but in many instances the likely returns are not what they were, or the investment comes with greater uncertainty. This is likely the reason that we are seeing such an uptick of interest in loan note investment right now.”

James Hayward, Investment Director, Farrbury Capital Partners

Please contact Farrbury Capital Partners by emailing info@farrburycapital.com or calling 0203 973 1510 for further details.