Theresa May will take over as the new Prime Minister of the UK. After what has been a very volatile few weeks in the UK, the FTSE 100 has performed well but the FTSE 250, which has a better representation of UK companies is somewhat lagging, down several percentage points on it’s pre-Brexit levels. This is mainly due to concerns over whether or not there will be continued investment into the UK or, as many have expected, this may well be directed to companies in more ‘EU friendly’ territories.
One area of concern has been the UK currency, which has seen significant drops against the USD and the Euro. It must be argued that this firstly comes as a direct result of the UK voting to leave but also due the uncertainty over who would fill David Cameron’s shoes as PM.
With May posed to take charge tomorrow here is hoping the UK markets remain stable but also a rally in Sterling vs the US Dollar.
The pensions industry has been significantly hit with many UK defined benefit pension funds going more and more into deficit as UK Gilt yields fall. This does however mean that people wishing to move their pensions out of these schemes could potentially receive superior transfer values to what they would have got pre-Brexit.
Never has there been a better time to consider reviewing your pension assets in the UK, to take advantage of all time high transfer values and see if moving your pensions out of the UK makes sense for you.