The news that Britain has voted to leave the EU has gradually spread across the world today. Many have expressed shock and disappointment at the news, whilst others rejoiced. At this point the future is unclear, but one thing is certain, the UK is going to go through significant changes.
Kings and Shaxson commented this morning: “The results are out, and years of uncertainty begin, not just for the UK but also for Europe.
“Many of us have already been in the office for some hours, and there is no shortage of comments and we can see the fallout in the global markets.
“We went into this referendum expecting the UK to remain but also with a more cautious stance and so far (at 8.50am) we have seen our balanced portfolios or Light Green hit by about 2.5% – 3% compared to the close last night, far less than the red numbers of -6-8% for equity markets that are making the headlines right now.
“In our bespoke portfolios (that is full discretionary portfolios) and direct equity models we had been able to ensure we had a good mix of equities and bonds that are able to benefit from the currency fallout, which is where the impact is greatest.
“Things will no doubt change a lot over the day, and our focus remains managing clients’ money and doing so for the long term. The Brexit is a long term issue, and there are all kinds of scenarios being discussed and a great deal of noise.
“Into this referendum we remained prepared for all outcomes and right now our stance remains one of nimble diligence, looking through the noise for opportunities but with an overriding cautious stance.”