DIY Investor Magazine
/
July 2016
26
Introduction by James de Sausmarez
Director and Head of Investment Trusts
Brexit – Overview and Outcomes
Henderson Global Investors
“The central message is to keep calm
and await developments; there are many
permutations from here and it will take some
time for the way forward to be clear. There is
no need for a knee-jerk reaction as managing
Britain’s exit will be at least a two year process
and there will be a lot for us to know and
understand in that time.
I do not think anyone is going to be hurried
not least because we are facing the biggest
constitutional crisis since Suez or even the
abdication of Edward VIII! The Tories are now
attempting to unite going forward by giving
themselves some time for the dust to settle and
to agree how to move forward so as to keep us
in the Single Market whilst also giving us direct
control over the levels of migration/immigration,
a key issue driving voters to the Leave camp
(the first time I can remember voters finding
an issue that is so important to them that
they were prepared to accept the economic
consequences).
I do not think the Farage view of immediate
and unconditional withdrawal will prevail. In
economic terms, uncertainty over the UK’s future
trading relationship with the EU will most likely
hold back investment and cause companies
for whom the single market is important to start
looking at relocating some activity. However,
the fall in sterling will help in the short term
and so will Mark Carney’s comments and the
actions of the Bank of England. That said, there
is no doubt that the UK economy is facing an
inevitable period of uncertainty and upheaval.”
