It felt like, and in many ways was, a seismic moment in the political history of Europe. Now, as 2019 approaches, the reality of Brexit moves ever closer.
That’s why investing through uncertainty is the prevailing theme explored by our expert contributors in this issue. Here they look at the potential implications of Brexit over the longer-term. In the overall scheme of things for investors, how significant
is this? And what are the threats and opportunities it might bring.
Brexit? Why we see opportunity in UK smaller companies –
Jonathan Brown and Robin West of Invesco are clear on the
short to medium term challenges Brexit may present, but they
also argue that, for the patient, long-term investor, it has the
potential to provide particular opportunities for those interested
in smaller company investment.
The Brexit journey –
James McCafferty of Alliance Trust Savings helps us regain perspective by taking a step back from the daily Brexit news
twists and turns to look at the big-picture journey we’re on to leaving the EU. From its start to expected finish.
UK market ripe for stock pickers –
Milena Mileva of Baillie Gifford explains why she has no time
for the Brexit doomsayers, instead maintaining focus on exciting British businesses that have the strengths to drive their vision forward over the longer-term, whatever the political and economic context may be.
Finding opportunity in uncertainty –
Different businesses will respond to Brexit in different ways and macropolitical events should not drive stock-picking decisions. This is the firm view of the team at BlackRock, who see now as
a time of genuine opportunity for investors to find good value, high-quality UK company stocks.
Stock selection is key to outperformance, not
second-guessing macro trends –
For Craig Baker of Willis Towers Watson, understanding the potential impact of macro-events like Brexit is important, but primarily about risk management. Painstaking, fundamental research into business models, industry dynamics and
company specific-factors always comes first.
Brexit: An investor’s guide –
At the time of going to press, investors are still largely uncertain as to how the UK’s trade relationship with the EU will look after 29 March 2019. Alliance Trust Savings’ Sara Wilson considers
the facts and how, under the circumstances, investors might position themselves.
- Protecting a portfolio in difficult markets: challenging your assumptions – Louise Kernohan of Aberdeen Asset Managers outlines why
she believes investors can no longer rely on old rules of thumb for a resilient portfolio in the face of events like Brexit. Quality
is important, but it must come at a reasonable price and with genuine prospects for growth.
Please remember the value of your
investments and any income from
them can go down as well as up and
you may get back less than the
amount you originally invested.
Investment Trusts may borrow to finance further investment (gearing) . The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that a small movement, down or up, in the value of a Trusts assets will result in a magnified movement, in the same direction, of that NAV. This may mean that you could get back nothing at all.
If you are unsure if a particular Investment Trust is suitable for you, you should seek independent financial advice making making any investment decision