Brexit: Implications & Opportunities

The United Kingdom’s decision to leave the European Union has sparked the next major wave of financial market uncertainty. Post the ‘Leave’ campaign’s victory on Friday, the All Ordinaries plunged 166 points or 3%. We see the concerns around the future implications of this historic vote igniting primal fears amongst many market participants. These concerns are widespread and relate to areas such as: – Further EU countries undertaking a similar ‘vote to leave’; – Disruption of the UK and European financial system from ‘passporting’ changes; – The EU’s intended negotiation tactics with the UK; – Flow on effects to the UK, European and global economies; – Currency volatility and especially GBP weakness. We touch on where we see the major risks, and more importantly, where Clime have taken advantage of what we see as compelling investment opportunities, for our Australian and international equity portfolios. (VIEW LINK)