Risk averse? Here are some funds you should avoid after Brexit

SINGAPORE (July 4): When the Brexit vote last week made apparent that Britain would be leaving behind its 43-year membership in the European Union for a very uncertain future, it triggered a widespread risk aversion among investors and several Singapore registered equity funds which are invested in European and UK stocks were badly hit.

These included the Schroder ISF UK Equity A Acc and Fidelity United Kingdom A-GBP which fell more than 12% in Singapore dollar terms on June 24. On that same day, another 30 locally registered European equity funds and British pound-denominated bond funds fell more than 8%.

Within European equities, Mark Haefele, global chief investment officer at UBS Wealth Management noted that financial and banking stocks would likely be the hardest hit in the near term with their exposure to London, a major global financial centre.

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