Press comment: Bank of England Financial Stability Report
If you are covering the Bank of England Financial Stability Report, please see the following commentary from Quilter Investors portfolio manager, Hinesh Patel:
“The Bank of England reports shows it is reasonably satisfied that large financial institutions have taken the necessary steps to guard against the risk of major instability in the event of a disorderly or no-deal Brexit. But it has made a point of explaining that this only means there is a satisfactory level of resilience in the system to withstand turbulence, and that this should not be confused with an expectation of a benign response in the markets.
“Brexit uncertainty continues to influence investment decisions. Corporate borrowing figures show a decline in the volume of funding raised by UK corporate through new debt issuance, while companies in other regions are benefitting from relatively fruitful conditions for fundraising. Similarly, the BoE report highlights the fact that markets which rely heavily on foreign investment have been stifled this year and the pound has come under increased pressure as the prospect of no deal increases.
“It is also notable that where the November stability report points to broad resilience across the banking sector, it is now speaking only about major banking institutions. The tone of voice has also changed somewhat to shift toward talk of a ‘worst-case’ disorderly Brexit. That is a small but telling sign that the BoE’s Brexit concerns have been growing steadily through the year.
“Although Mark Carney and his colleagues have offered some reassurance that there are adequate defences are in place to protect against major financial instability, investors should still be prepared for the possibility of big swings in Pound and heightened volatility as we move into the Autumn and the October deadline for leaving the EU. The important thing is to ensure that portfolios are fully diversified in preparation and investors are clear about how they’re positioned to manage these scenarios.”
Notes to Editors:
Quilter Investors is part of Quilter plc. It provides multi-asset investment solutions designed for advised clients in the UK and internationally and manages £19.2 billion on behalf of its investors (as at 31 March 2019).
Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.
Quilter plc oversees £114.9 billion in investments (as at 31 March 2019).
It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.
The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.
Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.
Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.
The Quilter plc businesses are being re-branded as follows:
- Quilter Financial Planning (previously Intrinsic)
- Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
- Charles Derby Group (becoming Quilter Financial Advisers)
- Quilter Financial Adviser School
- Quilter Cheviot
- Quilter Investors
- Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
- Old Mutual International (becoming Quilter International in 2020)
This press release is for journalists only and should not be relied upon by financial advisers or customers.
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This communication is issued by Quilter Investors Limited (“Quilter Investors”), Millennium Bridge House, 2 Lambeth Hill, London, England, EC4V 4AJ. Quilter Investors is registered in England and Wales (number: 04227837) and is authorised and regulated by the Financial Conduct Authority (FRN: 208543).
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