EU Referendum Results – Two Weeks Later
Moving onwards from the day of the vote for the UK to leave the European Union and we have seen some stellar returns from both markets and our own portfolios.
Below, our Deputy Chief Investment Officer, Chris Leyland, explains the recent shifts in the market since the Brexit vote and the importance of diversification in the current environment.
Our Portfolios, Politics and Diversification
All portfolios have produced positive returns with investors being rewarded for taking higher levels of risk during what has been a period of uncertainty.
The magnitude and direction of these returns will have come as a shock for many investors but now plans are coming into place which will give more visibility as to how the UK Government will be set up moving forward. Today, we have seen Theresa May formally taking over as the Prime minister of the Conservative Party, in what has been a fairly smooth process. Central Banks continue to offer support with the potential to maintain growth by stimulating monetary policy, including the Bank of England who have the ability to cut interest rates, if they feel it necessary.
In the current environment of return disparity, diversification is absolutely paramount and investors cannot focus on one single asset class alone. This is why True Potential concentrate on multi-asset investment solutions, where fund managers have the flexibility to adapt as the market environment changes. Our portfolios offer up a new level of advanced diversification, not only by geographical area and asset class, but also by fund manager style, helping to further reduce risk for investors.