WHEB Commentary
For the second time in recent UK election history the polls have been misleading. Over the past week, as well as opinion polls firming, both the betting and financial markets have been indicating a vote for remain with increasing confidence. This turns out to have been misplaced. As a result, both stock and currency markets are experiencing significant volatility this morning as it becomes clear that the UK has voted to leave the European Union.
Clients will be concerned amidst the news of market gyrations and sharp currency moves. In the short term at WHEB we are likely to do very little trading on our underlying investments. As a genuinely global equity manager, our portfolio has relatively low level of direct exposure to UK listed stocks (7.9% as of 23rd June 2016), with more than 60% of the portfolio invested in US stocks. Although global markets are likely to move lower today, the weakness of sterling against the US dollar would have a beneficial impact on the value of US portfolio holdings when translated back into GBP. This effect is likely to dampen some of the impact on overall portfolio values.
Apart from the general risks to the macro economy from the referendum result, the implications at the stock level are less clear as we do not yet know what form a Brexit will take. As long term investors we will continue to evaluate the risks and opportunities for all the holdings in our portfolio and stocks across our wider universe on a case by case basis with an eye on longer term fundamental value.
Important Notices:
Risks include: the price of shares (“Shares”) in FP WHEB Sustainability Fund (“Fund”) may increase or decrease and you may not get back the amount originally invested, for reasons including adverse market and foreign exchange rate movements. Past performance is not a guide to future returns. The Fund invests in equities and is exposed to price fluctuations in the equity markets, and focuses on investments in mid-sized companies in certain sectors so its performance may not correlate closely with the MSCI World Index (the Fund’s benchmark). For full risks, please see fund prospectus on www.whebgroup.com.
General: This blog, its contents and any related communication (altogether, the “Blog”) is issued by WHEB Asset Management LLP (“WHEB Asset Management”). It is intended for information purposes only and does not constitute or form part of any offer or invitation to buy or sell any security including any shares in the FP WHEB Sustainability Fund, including in the United States. It should not be relied upon to make an investment decision in relation to Shares in the FP WHEB Sustainability Fund or otherwise; any such investment decision should be made only on the basis of the Fund scheme documents and appropriate professional advice. This Blog does not constitute advice of any kind, investment research or a research recommendation, is in summary form and is subject to change without notice. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming shares. WHEB Asset Management has exercised reasonable care in preparing this Blog including using reliable sources, however, makes no representation or warranty relating to its accuracy, reliability or completeness or whether any future event may or may not occur. This Blog is only made available to recipients who may lawfully receive it in accordance with applicable laws, regulations and rules and binding guidance of regulators. WHEB Asset Management LLP is registered in England and Wales with number OC 341489 and has its registered office at 7 Cavendish Square, London, W1G 0PE. WHEB Asset Management LLP is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 496413. FundRock Partners Limited (formerly Fund Partners Limited) is the Authorised Corporate Director of the Fund and is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 469278 and has its registered office at 8-9 Lovat Lane, London EC3R 8DW. The state of the origin of the Fund is England and Wales. The Representative in Switzerland is ACOLIN Fund Services AG, Affolternstrasse 56, CH-8050 Zurich, whilst the Paying Agent is Bank Vontobel Ltd, Gotthardstrasse 43, CH-8022 Zurich. The relevant documents such as the prospectus, the key investor information document (KIIDs), the Articles of Association as well as the annual and semi-annual reports may be obtained free of charge from the representative in Switzerland.
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