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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

Global Business

Latest News  12/01/2018

What does the new year hold for global equities?

Hector Kilpatrick, Chief Investment Officer at Cornelian Asset Managers takes an optimistic look at global equities in the year ahead.

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Latest News  21/11/2017

Professional Adviser Awards 2018

We are delighted that our risk-managed fund range has reached the Finals in the 2018 Professional Adviser Awards in Best Multi-Asset Funds: Volatility Target category. The event 'Celebrating Excellence in Financial Advice' takes place on Thursday 8th February.

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