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  • 24th June @ 11.00am - Market update

Latest News  24/06/2016

24th June @ 11.00am - Market update

The conclusion of the Brexit referendum has unsettled investors and the initial reaction has been a classic ‘risk off’ move, whereby equities have been sold and gilts bought. Political and economic risk has increased and it is correct that the risk premium demanded to hold equities has risen.

More interesting to us is the move in gilts. Although several credit rating agencies are threatening to downgrade UK government debt on the back of the EU referendum result, investors are buying gilts. On a bleak day in the markets we find this encouraging.

Despite the political PR, the UK economy remains in a fragile state as the country continues to labour under both a large budget deficit and a large current account deficit. Had gilts sold off substantially this morning, it would have suggested that international investors were no longer prepared to finance the UK economy and the negative ramifications for Sterling would be significant.  The fact that this is not happening provides a crumb of comfort today.

Hector Kilpatrick
Chief Investment Officer

Latest News  29/04/2018

IA Volatility Managed Sector: first anniversary

One year after it came into being, the IA's Volatility Managed Sector now boasts more than 100 funds with over £25bn in assets. Head of Risk-Based Solutions Research at Square Mile, Alex Farlow takes a closer look at what the Sector offers...

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Latest News  03/04/2018

Celebrating the Managed Income Fund 3rd Anniversary

The SVS Cornelian Managed Income Fund celebrated its three year anniversary on 20th March 2018. The Fund sits within our core Risk Managed Fund Range, and offers a solution for investors seeking a diversified multi asset portfolio with a particular focus on income generation.

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