eValue relaxes rules on 'home-biased' model portfolios to offset Brexit effects

Markets volatile following Brexit vote

Carmen Reichman
clock • 2 min read

Technology specialist eValue has relaxed the rules on foreign investments in its model portfolios, saying it wanted to offset losses caused by the negative effects of Brexit on UK asset returns.

The UK's vote to leave the European Union, held in June, has led to lower prospective yields and higher market volatility, which meant retirees using drawdown were facing increasing risks to their income in later life, eValue said. To offset potential losses for investors predominantly focused on home-based assets, eValue removed its restrictions on investments in developed overseas equity markets, allowing investors to benefit from potentially higher returns in markets such as the US. The firm also reduced the floor on UK government bond yields from 0% to -1.0%, and removed restricti...

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