By Annabel Brodie-Smith
The sunny days of summer have arrived but it feels like we’re heading for crunch time for Brexit as the political debate over what sort of deal Brexit deal we pursue reaches fever pitch. Two years after the EU Referendum, with concerns about Brexit and an economic slowdown ever present, investor sentiment towards the UK is subdued despite the FTSE 100 reaching an all-time high in May.
Do watch the video where I talk to UK fund managers Alastair Mundy from Temple Bar, Georgina Brittain of JPMorgan MidCap and Neil Hermon of Henderson Smaller Companies about Brexit’s impact on Blighty’s prospects. Or you can read the article exploring these issues and opportunities in the UK including views from Simon Gergel of Merchants, Jean Roche of Schroder UK Mid Cap and Dan Whitestone, BlackRock Throgmorton Trust.
Click below to watch the video.
Our esteemed investment journalist, Ian Cowie, gives us his thoughts on Brexit, valuations and the UK investment company sectors which are trading at wider discounts than the average investment company.
He explains, “While we wait to see how Brexit will affect the economy after Britain leaves the EU next year, it can be said with some confidence that uncertainty has already depressed many share prices today and – while there are no guarantees of success - the first step toward making a profit is often to buy low.”
Another headache for the AIC is the KID - Key Information Document. This is a European regulatory requirement for investment companies. You may have seen them on
platforms as before you buy an investment company you now must prove by ticking a box that you have seen the KID. We are very concerned about the highly misleading performance scenarios and risk indicators on investment company KIDs.
Please read Ian Sayers’ views: “I cannot remember a time when consumers, directors, managers, analysts, trade associations and media commentators were so united in their criticism of a piece of regulation. Only regulators appear to have failed to spot what is obvious to everyone else, that basing future projections of risk and performance on the recent past was doomed to failure, and so it has turned out.”
Our final article looks at how investment companies are going green by providing investors with the opportunity to invest in businesses that are helping to tackle the environmental challenges we are facing. If you watched Blue Planet II, which highlighted the impact of plastic waste on wildlife, you’ll realise the critical nature of this and many other environmental issues.
This summer I’m looking forward to a holiday in France and a radical move from central London to Oxfordshire. I‘d like to wish you all a wonderful summer and Compass will be back in September.
Annabel Brodie-Smith Communications Director, AIC
