Economic forecasters, including the International Monetary Fund, the OECD and the Bank of England, have argued that a vote by Britain to leave the EU would wreak havoc in financial markets, and have unprecedented effects on growth in the UK, with added ramifications for Europe.
But for asset managers biting their nails over probabilities, there is a lot of uncertainty regarding how best to price in, and make money from, the referendum in two weeks.
Other fund managers say they have not changed their approach to investing in UK companies at all, citing a belief that cash-rich companies can withstand a Brexit.
“In times of crisis, lowly leveraged, lowly volatile companies preserve most of your wealth,” says Andrew McNally, chief executive of Equitile, the boutique fund house. “Does that protect you from a market crash? No. But it will protect you from losing too much wealth.”
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