The outcome of the United Kingdom’s referendum to leave the European Union has stunned forecasters and market participants. The market responded in dramatic fashion to the news, triggering economic repercussions where the Euro fell against the U.S. Dollar from 2 percent to 8.5 percent. Meanwhile, safe haven bond markets rallied up to 25 basis points. As heightened risk premiums filter into global markets, we advise investors to focus on long-term perspective of how events may play out and how markets and portfolios may respond.
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NEPC's Christopher Levell, ASA, CFA, CAIA, Partner, hosted a webinar discussion on Wednesday, June 29, 2016 on the effects of the United Kingdom’s referendum to leave the European Union. The UK’s vote is an unprecedented event that has major implications for global markets both in the short and long term.
In a historic referendum, Great Britain voted to leave the European Union, and the “Brexit” impact on the global markets was immediate—evidenced by market movements where the British Pound, the Euro, European equities, and UK equities were hit hardest. The next steps for Brexit will take some time, and political risks will increase uncertainty, which will dampen UK and European growth prospects. But what does “Brexit” mean for the broad capital markets?
Atlantic Trust CIO David L. Donabedian, CFA, and Head of Fixed Income Gary E. Pzegeo, CFA, hosted a live webinar in which they analyzed fallout from the Brexit vote and assessed:The economic outlook in Europe and the U.S.The impact on equity and credit market fundamentalsWhat central banks will doWhether other nations will leave the EUThe Portfolio implications
The United Kingdom’s “Brexit” vote to leave the European Union (EU) triggered a heightened level of market volatility that had several implications for stocks, bonds, currencies, and commodities. The vote will lead to long-lasting negotiations between the British government and the EU, and periods of geopolitical, economic and global financial-market uncertainty in the coming months and years as a result. Some investors may be wondering, “what now” following the buildup and global financial market disappointment with the Brexit vote.
Once an investor decides to allocate to metals, questions often arise concerning “How do I buy gold and what are the best practices around ownership?” Several steps will lead to an informed decision and illuminate how best to tailor a strategy to meet your needs and protect your wealth.
Investing strategies encompassing responsible investing are expanding rapidly amid greater interest from asset managers, pension plans, endowments and foundations, and plan participants. The primary challenge remains educating market participants on the different types of approaches and products. At the same time, there is rising demand among investors to align their financial objectives and investment goals with their value systems and beliefs. As a result, assets under management that were “responsibly invested” grew to $59 trillion in 2015, from $4 trillion in 2006.
The nascent market for green bonds saw a growth spurt in 2014 with issuance tripling from a year earlier, surpassing $38 billion. The growth in green bonds comes amid greater awareness of climate change and expanding investor appetite for environmentally-aware investment products. The prevalence of these securities is likely to rise as they allow issuers and investors alike to demonstrate their commitment to environmentally focused initiatives.
Corporate America is doing it, so why shouldn’t individual and institutional investors do it too? In this case, it refers to creating a so-called “fortress balance sheet” that provides protection and downside risk management by holding excess cash and cash alternatives to retain liquidity. The king of this conjectural fortress is cash—often thought of as the core foundation to a strong balance sheet due to the known and consistent outcome it delivers.
A growing trend among healthcare organizations is to evaluate and/or invest in private equity funds or directly in companies focusing on opportunities in the healthcare industry. This trend stems from the necessity of healthcare organizations to adapt to the changes within their industry in order to maintain key advantages and stay relevant. Each organization’s approach, objective, and expectation for success will differ when considering a strategic investment.