The strength of financial markets since June’s EU referendum vote has taken many people by surprise. In our latest podcast, Gervais Williams, managing director of fund manager Miton, explains why UK markets have done so well given the challenging political and economic backdrop.
The devaluation of sterling following Brexit means some stocks are now “8% or 10% cheaper,” he explains.
For investors like himself who focus on “good and growing income”, Williams warns that there could be challenges ahead. He tells Ben Gutteridge, Brewin Dolphin’s head of fund research, that underlying dividend growth is under threat.
He says: “If we don’t see a proper rise in the oil price in, say, the next two years, BP and Shell’s... dividends are going to come under pressure.”
Despite this, Williams says there are still plenty of investment opportunities, especially at the smaller end of the stock market that he favours. He explains why he likes the infrastructure and support services business Stobart Group, which owns and operates Southend Airport.
The fund manager also reveals the company shares he has bought since the Brexit vote. These include the specialist telecoms company Sepura, internet payment services provider Safecharge and Jupiter Fund Management.
To listen to this or other Brewin Dolphin podcasts, go to www.brewin.co.uk/sharing-our-thinking/podcasts
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