Press comment: Brexit reaches 'spaghetti junction' following historic vote
If you are covering yesterday’s vote on Theresa May’s Brexit deal, please see the following commentary from Quilter Investors head of investments, Anthony Gillham:
“The result is a blow to Prime Minister Theresa May and although she has asserted her conviction that she can still get a deal through Parliament, the path ahead remains extremely unclear. We have seen an unprecedented level of Parliamentary opposition to the Brexit deal, and we now know that MPs will hold a vote of confidence in the current Government.
“It means that numerous permutations still remain, with no clarity about which is most likely. This is not a fork in the road for Brexit, but a spaghetti junction.
“With no reassurance that a stable resolution can be reached, asset prices will continue to reflect the extreme uncertainty that prevails in UK politics. Sterling will remain sensitive to changing rhetoric over the coming days and weeks, and markets will be watching today’s confidence vote very closely indeed.
“On the basis that up until now ‘no deal’ has been treated as a relatively unlikely prospect, the coming weeks could prompt significant shifts in UK asset prices. If the likelihood of a no deal is seen to increase significantly – many analysts were predicting just a 5-10% likelihood of a no deal outcome – then it could move markets.
“For long-term investors it is crucial to take stock of the big picture, however. While uncertainty is clearly a concern for business leaders, the fate of UK listed firms is not totally reliant on the domestic economy. UK large cap companies derive a huge share of their revenues from overseas operations, and many have in fact benefitted from Sterling weakness, which may boost their competitiveness. Risk events with an unknown outcome such as this are a perfect example of the importance of diversification and a global outlook for investors. When one region or asset class faces a period of uncertainty, diversification is an investor’s built-in defence.”
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 18.8bn on behalf of its investors (as at 30 September 2018).
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 £118.1 billion in customer investments (as at 30 September 2018).
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: Wealth Platforms and Advice and Wealth Management.
Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.
Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.
The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:
• The Multi-asset business is now Quilter Investors
• Intrinsic to Quilter Financial Planning
• The private client advisers business is now Quilter Private Client Advisers
• The UK Platform to Quilter Wealth Solutions
• The International business to Quilter International
• The Heritage life assurance business to Quilter Life Assurance
• Quilter Cheviot will retain its name
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