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How to invest through the Brexit noise

Artemis Income co-manager Nick Shenton focuses on the fundamentals of UK companies, and says Brexit is creating some buying opportunities for stock pickers

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

  • Brexit is creating opportunities for investors
  • The UK stock market has continued to rise despite concerns
  • Focus on the fundamentals and ignore the noise

Read transcript

Emma: Hello I'm Emma Wall and joining me today to talk about investing in the UK stock market is manager of the Artemis Income Fund Nick Shenton. Hi Nick.

Nick: Hi Emma.

Emma: So I know that you are a fundamental-driven stock picker, but even with that kind of process in place you must be mindful of all the noise that's going on in the UK at the moment. How'd you see through that to investing opportunities?

Nick: Okay so we're straight into Brexit then? We tend to focus on what we can control and what we can understand which is why we always go back to the specifics of the stocks, the companies, the industries, but you're absolutely right this has been an extraordinary period for a number of years now. What we could say as a positive is it appears as though the people running the country have had their attention elsewhere - focused more towards Europe than the UK itself, and running it. And the economy's still doing okay. Companies are still producing goods that their customers want to buy and things keep ticking over, which if you're an optimist you might take as a positive sign. So in that sense the disruption has not been as great as feared but nonetheless we see it as an opportunity because of the perceptions of potential chaos, which is keeping international investors out of the UK stock market. And the way we're seeing that manifests itself is companies from overseas coming and bidding for UK assets. So we tend to put a positive slant on it that UK assets are probably quite cheap at the moment.

Emma: So it sounds like you're pretty positive and you're seeing opportunities where perhaps other people will see challenges. Is there anything that you are worried about, is there any cloud on the horizon?

Nick: However much we might take a relatively positive view on how the UK economy has continued performing, a key risk for the stock market is uncertainty from a change in government. We don't know what would happen, we don't know what the outcome would be but it seems fair to say that a Labour government may be less business-friendly than a Conservative one and that's also probably what's keeping international investors out of the UK - more than Brexit actually. It's whether Brexit precipitates a wholesale change in UK society.

Emma: Nick thank you very much.

Nick: Thank you.


This video is not personal advice or a recommendation to invest. If you are unsure about the suitability of an investment please seek advice. Investments can fall as well as rise in value and you could get back less than you invest. Past performance is not a guide to the future.

The views in this video are those of Nick Shenton and may not be shared by Hargreaves Lansdown. Views correct as at 19.09.19.


Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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