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Post-Brexit vote opportunities in UK investments

  • To learn what the immediate post-Brexit vote effect was on small caps.
  • To understand which sectors and which type of companies can outperform.
  • To grasp what might the long-term drivers be for small-cap investing.
CPD
Approx.30min
 

Live feed

Live Blog Post-Referendum: Investment Opportunities
 

Speakers

  •  Emma Ann Hughes

    Emma Ann Hughes

    Editor of FTAdviser and Financial Adviser

  • Helal Miah

    Helal Miah

    Investment research analyst for The Share Centre

  • Thomas McMahon

    Thomas McMahon

    Fund analyst for FE Invest

  • Roland Arnold

    Roland Arnold

    Director and portfolio manager, UK equities, for BlackRock

Agenda

Since the vote to leave the European Union was announced on 24 June, there has been significant unrest and uncertainty among investors. 

In the few days immediately after the result was announced, the FTSE 100 and the FTSE 250 both saw billions wiped off as a result of knee-jerk trading, while sterling started a descent which has now reached a 168-year low.

But within a month, both stock markets rebounded and the smaller and mid-cap markets, which traditionally are more domestically focused, have experienced strong performance.

What does the future hold for small to mid-cap UK stocks as we start to move towards a ‘Hard Brexit’? Are there particular sectors advisers should be exploring or avoiding to help their clients achieve their long-term investment goals?

This 30-minute live video will feature presentations on the impact of Brexit on UK smaller and mid-cap companies, explore what has worked well and how the government could further tinker with the rules in the future.

You can ask our panel of experts questions about the opportunities and challenges for UK small and mid-caps, and shape the debate by emailing simoney.kyriakou@ft.com

The debate will also qualify for 30 minutes’ CPD.

Agenda: 

1) The situation post-Brexit vote

In the immediate aftermath of the vote to leave the European Union, the FTSE 250 suffered a huge shock, with billions wiped off the value of mid- and small-cap stocks. Yet a few weeks later, the markets had rebounded. What lesson can investors learn about the value of long-term investing despite short-term market shocks?

2) Current opportunities

UK plc has many well-run small and mid-cap companies with growth prospects and good cashflow. What sort of exposure should investors have to such companies and which sectors of the small and mid-cap markets are showing promise?

3) Positioning for a ‘Hard Brexit’

Prime Minister Theresa May has promised a Hard Brexit, which has already affected Sterling and may have a knock-on effect on those smaller and mid-cap companies which are dependent on Europe for staff and services. How should advisers position portfolios ahead of the eventual Brexit? What is the prospect for S/M-cap stocks, and will the fundamentals for UK small and mid-caps change?

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Within the space of five trading days, how much had the FTSE 250 fallen?

  2. According to Mr Arnold, when do smaller companies particularly outperform?

  3. What has always provided an opportunity, according to Mr Arnold?

  4. The most recent Deloitte CFO survey suggests there will be significant declines in discretionary spending, hiring and capex intentions - true or false?

  5. What will inevitably be a driver of volatility, according to Mr Arnold?

  6. What sort of environment does Mr Arnold expect?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To learn what the immediate post-Brexit vote effect was on small caps.
  • To understand which sectors and which type of companies can outperform.
  • To grasp what might the long-term drivers be for small-cap investing.

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