I seem to remember warning against property some time back. I diversified as normal but left out property, except Black Rock Global, which goes up and down in an entertaining fashion in normal times.
Brexit and Financial Markets
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In the latest episode of the United Hour Podcast, Nik (@Rood) is joined by CEO Duncan Drasdo and Financial Director Andy Green from the Manchester United Supporters Trust for a special episode on all things behind the scenes at Old Trafford including a brief history of MUST and their aims today, views on INEOS and Sir Jim Ratcliffe so far, and the Old Trafford regeneration.
I seem to remember warning against property some time back. I diversified as normal but left out property, except Black Rock Global, which goes up and down in an entertaining fashion in normal times.
This one? At least its a property securities rather than bricks and mortar fund. Can imagine it's a bit of a roller-coaster.
https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=M2FD5&univ=O
That's the man Jips. It's up 12% since I got it anyway.
I've always liked a high proportion of investment ex UK, eggs and basket sort of thing, just natural caution really.
I've always liked a high proportion of investment ex UK, eggs and basket sort of thing, just natural caution really.
Are you wumming? I can't tell anymore. Your cheaper trips back home is not a good thing for this country or our economy, it's nowhere near being described as 'great'. It's actually awful.
No wum, for me its a bonus. One mans meat is another mans poison and all that. I know youd like the pound to be worth 50 euro but how does that help me and my fellow Europeans that want to go to uk? Who'd buy your goods?
This issue isn't about one mans meat, it's about the country as a whole. Nobody should be thinking only about themselves. I and many others I know would prefer not to go into a recession so that you can visit home for less. We didn't have a problem selling our goods before the leavers tanked our finances.
Don't blame you. I had a lot in UK small caps and minimal dollar exposure, so not been great. Have taken a bit of a beating.
Well if you grew up in the thatch era you were brainwashed to look after number one.
According to experts, many of the same ones Remain group listened to, a global recession is just around the corner but we can blame it on politics if you like
£1 = €1.18
£1 = $1.317
and the Uk still haven't left yet , going down
£1 = $1.317
and the Uk still haven't left yet , going down
I wouldn't be suprised if it carried on going down to around $1.22. Sterling was overvalued and it was heading that way anyway with US fiscal policy and our own lack of inflation and low interest rates. Brexit has provided a quick release to what already should have been happening.
It'll be interesting to see what the Feds next move is, if they revert and loosen policy then it'll get even more interesting.
Against the dollar you can understand it being possibly overvalued but it's losing against the Euro at the same rate - with even lower interest rates - this shows how weak Sterling is, much more than it should be and will continue to fall especially if Article 50 is invoked
Aviva Investors has suspended redemptions from its £1.8bn UK property fund now- it's snowballing, expect more to follow...
I'll be honest I dont know enough to really argument the point. The above is my undereducated viewpoint. Someone else here might even able to advise. Currency appears to me to be as much political than it is a fair representation of anything.
From what I understand the Euro was undervalued but then the ECB wish to keep it that way. We can probably expect fresh stimulus from then shortly.
Don't worry guys, Cameron, Farage or Boris will sort it out
Undoubtedly more scare mongering to frighten people into voting for remain......
Project Fear turned into Project flee from the sinking ship
Exports will increase as the pound falls but wil it be enough to compensate for losses and increased costs in other areas ?
Uk imports more than it exports so it makes the difference even more
And there we go...
M&G SUSPENDS TRADING IN M&G PROPERTY PORTFOLIO AMID BREXIT UNCERTAINTY
London, 5th July 2016 - M&G Investments (M&G) announces a temporary suspension of trading in the shares of the M&G Property Portfolio and its feeder fund.
Investor redemptions in the Fund have risen markedly because of the high levels of uncertainty in the UK commercial property market since the outcome of the European Union referendum.
Redemptions have now reached a point where M&G believes it can best protect the interests of the funds’ shareholders by seeking a temporary suspension in trading.
This will allow the fund manager time to raise cash levels in a controlled manner, ensuring that any asset disposals are achieved at reasonable values.
The decision to suspend was taken in agreement with the Fund’s Depositary and the Financial Conduct Authority has been informed. Orders placed after 12pm on 4th July 2016 will not be processed until the suspension is lifted. M&G will review the suspension every 28 days.
The Property Portfolio is a broadly diversified fund which invests in 178 UK commercial properties across retail, industrial and office sectors on behalf of UK retail investors. The Fund, which managed assets of £4.4 billion as at 30 June 2016, has no borrowings.
ENDS
M&G SUSPENDS TRADING IN M&G PROPERTY PORTFOLIO AMID BREXIT UNCERTAINTY
London, 5th July 2016 - M&G Investments (M&G) announces a temporary suspension of trading in the shares of the M&G Property Portfolio and its feeder fund.
Investor redemptions in the Fund have risen markedly because of the high levels of uncertainty in the UK commercial property market since the outcome of the European Union referendum.
Redemptions have now reached a point where M&G believes it can best protect the interests of the funds’ shareholders by seeking a temporary suspension in trading.
This will allow the fund manager time to raise cash levels in a controlled manner, ensuring that any asset disposals are achieved at reasonable values.
The decision to suspend was taken in agreement with the Fund’s Depositary and the Financial Conduct Authority has been informed. Orders placed after 12pm on 4th July 2016 will not be processed until the suspension is lifted. M&G will review the suspension every 28 days.
The Property Portfolio is a broadly diversified fund which invests in 178 UK commercial properties across retail, industrial and office sectors on behalf of UK retail investors. The Fund, which managed assets of £4.4 billion as at 30 June 2016, has no borrowings.
ENDS
Next headline will be 'Pension Funds Fecked Big-Time'.
At which point do the Brexiters admit their error -- how bad does it have to get financially, and this is only the beginning
That's the one I disinvested from around two week ago thankfully, made a decent return too. I'm assuming its fund managers moving their clients out rather than retail investors.
I'm not sure the movements are entirely logically but certainly well expected. They were all starting to produce small gains anyway
I'm not sure the movements are entirely logically but certainly well expected. They were all starting to produce small gains anyway
That was so yesterday's news...
FTSE350 pension deficits rocket to a record £119 billion in wake of Brexit
- Liabilities hit a record high of £813bn, £52bn up from May
- Accounting deficits increase by £21bn to £119bn
Mercer’s Pensions Risk Survey data shows that the accounting deficit of defined benefit (DB) pension schemes for the UK’s 350 largest listed companies increased from £98 billion on 31 May 2016 to £119 billion at the end of June in the aftermath of the Brexit vote.
At 30 June 2016, asset values were £694 billion (representing a rise of £31 billion compared to the corresponding figure of £663 billion at 31 May 2016), and liability values were £813 billion, representing an increase of £52 billion compared to the corresponding figure of £761 billion at the end of May.
Pension liabilities are at the highest level since Mercer’s monitoring began. Increases in asset values, driven by the devaluation of sterling and the possibility of a cut in UK bank base rates, have offset this increase in liabilities. However, the immediate response of the markets to Brexit was clearly bad news for pension scheme deficits.
“The fall in corporate bond yields meant that liability values increased by over 5% during just one month, corresponding to a 20% increase in deficit values,” said Ali Tayyebi, Senior Partner in Mercer’s Retirement business. “Government bond yields fell even more than corporate bond yields which meant that liabilities on the funding basis, which pension scheme trustees typically use for setting cash contribution requirements, increased by over 8%.”
Mr Tayyebi added, “The level of market volatility in the last week of June is just an early skirmish in the fight to understand the longer term outlook for the UK’s economy and markets. More than ever, the risks and associated opportunities which this creates and the appropriate speed of response will be very specific to the circumstances of individual pension schemes, highlighting the value of frequent monitoring of funding levels and, for some clients, delegated investment management.”
Le Roy van Zyl, Senior Consultant in Mercer’s Financial Strategy Group, said, “Brexit may be positive for some schemes, for example, where the business outlook of the sponsor has improved significantly due to better export prospects. For others, their ability to continue to underwrite pension deficits and risk taking may have deteriorated significantly. Clearly, trustees and sponsors should be assessing the new state of affairs to determine if new priorities are needed or any action taken. Uncertainty may be here for some time.”
Mercer’s data relates to about 50% of all UK pension scheme liabilities and analyses pension deficits calculated using the approach companies have to adopt for their corporate accounts. The data underlying the survey is refreshed as companies report their year-end accounts. Other measures are also relevant for trustees and employers considering their risk exposure. But data published by the Pensions Regulator and elsewhere tells a similar story.
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An interesting article in the DT about involing article 50. Basically it says that while we cannot actually be forced to invoke it, there are certain measures they could take to make life very difficult or even nasty for the UK. Not sure if the best analogy would be poker or Russian roulette.
Farage's future is sorted thanks to his MEP pension coming right from evil Brussels
When it starts noticeably hitting their pensions I guess.
Won't be their fault though, will still somehow be everybody elses.
it was the remainers job to 'govern'. We've heard that already
The other good one is 'we should have been told this at the time'.
That one will become more prevalent I feel.
The leaver camp are like a terrorist group (not militarly/violently speaking) who bombs their neighbourhood only to bitch against the local council because their house is damaged. Its already bad enough that this mess was created by two Etonians who got engaged in a dick measuring contest. The fact that no one has a plan and is fleeing like rats on a sinking ship makes things almost comical.
A second referendum at this point is a must.
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Pound just dipped below 1.30 before bouncing back. Lowest levels since 1985.
Well I do my best. I was musing on how a lot of pension funds (mine too, eek) are quite into property.
If the vote were rerun tomorrow, I believe you would see 60% remain, even without extra measures such as allowing UK citizens living in other EU states to vote. The people in no hope areas might still vote out but the over 60 crowd who never really accepted the EU would soon think again as their pension shrinks and their summer holiday becomes increasingly unaffordable. It's a time for statesmanship rather than political expediency, for someone to say that this wasn't the X-Factor or even the EU parliamentary elections and that the economic wellbeing of our country is at stake.
I get the impression someone is going to make a killing out of all this but who could it be ?. Let's keep an eye on the sectors that Cameron, BoZo and Farage move into.
I'm not sure that what you believe might happen if we rerun the referendum is very important since we are not going to rerun the referendum but I do think that what will happen if the referendum is ignored will be worse than Brexit. I say this as a remain voter.
Arron Banks will have made a fortune out of this.
The vote won't be ignored but it will be delayed, put back, excuses, negotiations for a very long time. They will never come out and say we're not doing this, but they can put it off until opinion has swayed and the consequences become clearer.
Somewhat bizarrely, my pension fund has rocketed by about 8% since the Brexit vote. As a leave voter, I was fully expecting it to get a bit of a twatting and plummet the other way to be honest. I will add that it's more by luck than design that this has happened, although this afternoon I've moved a few thousand units over from one fund to the best performing one of the past 10 days.
Not ignored, just rerun based on facts. To put it another way, misrepresentation has very serious consequences in all commercial areas of life, whether it is taking out insurance or buying shares. The idea that spreading blatant lies resulting in a 20% fall in the currency (so far) and probable recession is of less public concern than a negligent misstatement in a share prospectus resulting in a small number of people losing their shirts would be laughable if it weren't so serious.