Discretionary fund managers are expecting "choppy waters" after Brexit vote

William Turvill
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Brexit vote
The UK voted to leave the European Union on 23 June (Source: Getty)

Discretionary fund managers (DFM) are anticipating “choppy waters” after the Brexit vote, a new study has found.

Seven in 10 believe the UK’s Leave vote poses a threat to investments, while 55 per cent cited weak global GDP growth and 52 per cent geopolitical uncertainty.

The findings were based on a CoreData Research study conducted in August, in which 92 DFMs were interviewed.

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Some 16 per cent of survey respondents believe UK equities will be the best-performing asset class after Brexit, above eight per cent in alternative, three per cent fixed income and three per cent property. International equities were chosen by 70 per cent.

Participants in the survey were generally pessimistic about Brexit, with 65 per cent saying the decision will not improve the outlook for asset classes in the long-term.

But 37 per cent said they were not considering reducing their exposure prior to the triggering of Article 50, suggesting the vote will not have an immediate impact.

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“The UK’s decision to exit the European Union, combined with a number of economic headwinds, could hit growth hard over the next 12 months,” said Craig Phillips, head of international at CoreData Research.

“DFMs acknowledge this and say they are prioritising risk over return as they look to manage clients’ assets across choppy waters.”

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