EU referendum

EU referendum

Client: All overseen portfolios

Skills: Evaluation of portfolios in regard to the EU referendum vote

Once the Brexit referendum was announced in February, Gilt Edge spent large amount of time after this researching and interacting with economists, fund managers and groups to try and ascertain the implications of a vote to stay in or leave the EU. As the vote drew nearer it became clearer that there was no outright winner and no credible case could be made either way as to the outcome and so we designed two portfolio options for clients, one for a vote in and one for a vote out.

The asset allocation was different for each and certain investments had higher weightings than others. All of this came from the extensive research undertaken throughout the months in the lead up to the vote. Having both options available meant that the IFA had opportunities to protect and generate returns from both scenarios and clients could benefit whichever way the vote went.

Consequently, the public voted to leave and so IFAs were given the opportunity to utilise the less volatile more defensive portfolio which all clients benefited from the lesser volatility and protection. All the information was provided to the IFAs early on Friday morning so changes could be made straight away. This included factsheets, market commentary and copies of any changes and the reasons why these changes were being implemented.

This type of action is provided to all IFAs when these types of event occur. Having options can help produce the best opportunities to make returns in all market conditions for clients.