Life Beyond The Referendum; Investment Opportunities In UK PLC


In its annual St. George’s Day focus on the Best of British, Old Mutual Global Investors award-winning UK Equity team comment on the upcoming EU referendum and say ‘keep calm and carry on’.

“Market jitters, ahead of the EU referendum vote on 23 June, are at complete loggerheads with what UK company bosses are telling us”, says Richard Buxton, head of UK equities at Old Mutual Global Investors.

Inevitably, with global growth sluggish, UK growth momentum is slowing from a high base. The pricing environment is tough, with companies having to adjust through greater incentives for customers, or by keeping costs low. But while consumers are cautious over their purchases, and the savings ratio has trended down again, that’s not to say they have stopped spending altogether.

Consumer sluggishness aside, the key to propelling UK growth forward is corporate sector confidence – reflected through investment and innovation. As a country, our ability to innovate pervades the pharmaceutical, digital engineering, electronics and automotive industries. Whilst the labour market is tighter but the cost of finance pretty low, there is a highly favourable environment for British industry to invest and enhance productivity.

The benefits of cheap financing have certainly manifested themselves in the rush of companies that have come to the market in recent times. Since the start of 2013, 150 companies have listed, with a pipeline of promising companies seeking a listing once the uncertainty of June’s vote is out of the way.

So while the Brexit campaign hots up, and both sides release increasing numbers of hurried statistics to support their case, let’s keep our focus on life beyond the referendum. Businesses up and down the country need to ‘keep calm and carry on’. Putting investment on hold, due to uncertainty, risks fuelling a lack of confidence.

And if anyone is in any doubt about which way the great British public will vote on 23 June, take a look at the bookies odds, not the polls. Despite all the campaigning, the odds to remain in the EU have barely changed: 2-1 on we stay in Europe.

-Ends-

Notes to editors:

FOR FURTHER INFORMATION (JOURNALISTS ONLY)

Kimberley Robinson, Head of PR & Internal Communications                                               

020 7332 7687                                      

kimberley.robinson@omglobalinvestors.com

Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £24.7 billion¹.  The team consists of 230 industry professionals, including a team of 59 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to:  www.omglobalinvestors.com

¹ As at 31 December 2015

Old Mutual Wealth

Old Mutual Wealth is the leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management products and services delivered by Old Mutual Wealth in the UK and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £104.4 billion in customer investments (as at 31 December 2015).

Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 18.9 million customers across the world and has a total of £327.9 billion assets under management (as at 31 December 2015).

This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.