Despite British politics throwing up its fair share of surprises in recent years, the opposite was true for the 2024 general election; as predicted, Keir Starmer and Labour won by a comfortable majority.
And, as a Wealthify investor, you may be left wondering the following:
“How is this going to affect markets and my Plan(s)?”
Well, let’s start with the bigger picture.
It’s been 14 years since Labour was last in power, and their proposed policies will be one of the key drivers in how markets react to this new government.
It’s worth noting that some of their initial manifesto points could be potentially beneficial to investors.
For example, taking their pledge to build 300,000 homes a year; if you have an Original Plan with Wealthify, then some of your money is invested in property and infrastructure, meaning it could benefit from this initiative.
Likewise, Ethical Plans might benefit from many of the party’s green transition proposals. These include Labour’s pledge towards green initiatives; a 2030 ban on petrol and diesel car sales; and the creation of Great British Energy: a new, publicly owned clean energy company.
When it comes to big events like an election, it’s important to remember that markets can react unpredictably — which often leads to increased uncertainty.
However, given that the result panned out as predicted, this year’s election hasn’t come as a huge surprise to investors or markets.
This means that much of the reaction may have already been priced in, and we may not see the usual levels of volatility.
Although there are never any guarantees with investing, we feel confident that this outcome is unlikely to be a cause for concern when it comes to Plan performance.
All our Plans are globally well diversified across many different regions and asset types. That is to say, only a small percentage of your money – the bit that’s either invested in UK markets or UK Government Bonds – will be affected by any additional post-election volatility that we may see in coming weeks.
The rest of your money will spread out across regions such as the US, other parts of Europe, and Asia — all of which have their own economic and market drivers.
As ever, our Investment Team will be closely monitoring markets to protect your Plans where necessary, and to take advantage of any investment opportunities that may arise in the near future due to the change of UK Government.
If you have any questions or concerns, our friendly Customer Care Team are always on hand to help, and can be contacted using one of the methods at the bottom of this page.
With investing your capital is at risk, the value of your investments can go down as well as up, and you could get back less than invested.
Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
