In late June, the people of Great Britain voted to leave the European Union.
The decision sent shock-waves around the world, but its true impact is yet to be truly felt. Here at Ipreo, we are keeping stock on, well, stocks, and the financial markets in general, as they react and respond to the ramifications of the decision.
In the immediate aftermath of the vote, we reviewed short-selling activity prior to and immediately after the June 23rd Brexit vote. Today, the Blog is back with a special report that focuses on the words and actions of buy-side investment managers, the most important actors in the equity markets, and attempts to assess how Brexit is impacting the investment process.
The dominant overarching theme of Brexit is uncertainty: uncertainty of the timing, economic impact, and ability of the EU to survive as an economic bloc in the long term. These questions will be answered over time and are mostly out of the control of individual companies. In times of uncertainty, investors value information that will let them assess the potential impact. Of course, companies may be as uncertain as the investment community is in terms of the eventual outcome and long-term impact of Brexit. Nevertheless, quantifying your current revenue and expenses exposure to currency fluctuations and providing a narrative, even if it is still developing, on how strategy will react to Brexit will be welcomed by the buy side.
Read the full Ipreo Special Report: Brexit – Words and Actions from the Buy Side.
Next up in our Brexit series will be a view of the investors making the largest moves in UK and
continental European equities.