Worries about the consequences of Brexit have prompted many fund buyers to increase their allocation to cash and hedge their long positions. However, some put some risk back on at the end of last week as polls swinged back towards ‘Remain’.
Everything is pointing towards a wild day in financial markets this Friday with asset prices shifting dramatically whatever the outcome of the referendum.
Betting odds have emerged as a coveted predictor of the outcome of the UK’s EU referendum. But are they actually as reliable as some fund managers suggest? Nikko AM has its doubts.
UK equities are the most vulnerable asset class in the immediate aftermath of a Brexit, a stress test conducted by the risk modelling provider Axioma showed.
Further asset management consolidation is on the horizon but the line between predator and prey is increasingly blurred Numis said in a note on Friday.
Financial markets have lacked direction in recent months, with the main equity indices all very close to where they were at the start of the year. Macroeconomic data are not strong enough to reinvigorate the bull market, yet not sufficiently weak to stoke fears of recession.
The UK is more attractive to invest in if it remains in the EU, according to Commonwealth business leaders.
The problem of managers “dressing up” track records of their funds has been getting worse, not better. This is the conclusion of asset management consultancy Cerulli after talking to a bunch of fund consultants in Europe.
A vote to leave the European Union would most likely result in a material slowing of growth and a notable rise in inflation, the Bank of England said on Thursday.
Recent research by Martijn Cremers, who first coined the concept of active share back in 2009, shows that high active share (US equity) funds that trade relatively little have a better potential for outperformance than other funds. This could be the case because patience is often required to exploit market inefficiencies, Cremers told Expert Investor.
Recent reports from those favouring Britain to stay in the EU suggest a Brexit of any sort would be severely damaging to the UK economy. We assess what will be in store for investors if it happens, and how to Brexit-proof your portfolios.
As the month of May trundles into view investors will be thinking about the traditional summer-proofing of portfolios, but the shrewdest among them may see more opportunity than danger.
