Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

MARTIN CURRIE ACTIVE VIEWPOINT EUROPE AND BREXIT: WHAT HAPPENS NEXT?

MARTIN CURRIE ACTIVE VIEWPOINT EUROPE AND BREXIT: WHAT HAPPENS NEXT?

Europe’s political and economic make-up could be radically altered after 23 June if the UK votes to leave the European Union (EU). The EU would lose its second largest economy, at a time when growth is already moving at a glacial pace, and the lack of clarity over new trade agreements and foreign direct investment (FDI) could see a prolonged period of uncertainty.

 In its latest Active Viewpoint, Martin Currie, the specialist active equity manager, considers whether ‘Brexit’ will be the seismic event many predict, or just prove to be a hump in the road.

 The UK’s vote on EU membership will be historic and the result could dramatically change not just the political landscape of a continent, but the environment in which European companies operate. In the lead up to the referendum, polls have suggested voters will opt to ‘remain’, but the result is too close to call. This lack of certainty has led to higher market volatility, both in sterling and in equities, as polling day approaches. It seems probable that staying in will be a non-event in terms of its impact on markets, barring any future referendum campaigns. But it is equally probable that withdrawing will lead to a period of instability.

 Michael Browne, Portfolio Manager, European Long/Short at Martin Currie comments:-

“Whatever the outcome, from an investment perspective it is important to be flexible and pragmatic. Thus a long/short strategy is invaluable. In the more negative scenarios, we would aim to protect capital by reducing the balance sheet and increasing our short exposure. Against a more positive market response we could extend the balance sheet into a rising market. Also, as a pan-European strategy, we have the flexibility to focus on those countries and companies which are either less exposed to the impact of Brexit, or will benefit from it.”

Martin Currie’s European Long/Short stockpicking process is based on a deep, fundamental analysis of individual companies, but the team also considers macro factors qualitatively (via its ‘traffic light’ system) and quantitatively (using its macro matrix). The team’s credit indicators will react immediately to the Brexit outcome and, sticking to their process, they would review their net and gross exposures and react to any risk or opportunities that they find.

 Steve Frost, Portfolio Manager, European Long/Short at Martin Currie continues:-

“From a portfolio point of view, we do have long exposure to some of the sectors which are more prone to an impact from Brexit. These include several financial names, including a UK bank and a number of chemical companies*. For us, holding these stocks, is based first and foremost, on our positive view of their fundamentals rather than a pre-emptive decision, either way, on the outcome of the referendum. However, we believe that any potentially negative exposure to Brexit should be mitigated within the portfolio, not only by the balance of holdings across regions and sectors, but also through our short positions.”

 The objective of Martin Currie’s European Long/Short team remains to efficiently capture uncorrelated equity returns with managed volatility and downside protection. In this sense, the Portfolio Managers will aim to look through the current short-term market noise and benefit from the opportunities, whatever UK voters decide.

 Read more on Europe and Brexit – What happens next? – in Martin Currie’s latest Active Viewpoint here.  You can find all Martin Currie’s latest views on the website at www.martincurrie.com

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post