September 2016
From The Director


You already know. The whole world knows. In late June, voting on a referendum of global impart, UK decided to leave the EU. Naturally, the initial shock waves of that decision reached around the world, but now that the dust has settled, what exactly does Brexit mean? This month we take a closer look at what it means to activate Article 50 of the Lisbon Treaty and what might lie ahead for businesses in UK and the EU.

Speaking of business, how’s you personal financial position these days? As Brexit proves, you cannot predict the future, but it’s never too early to start planning for it. Our objective is to help you get the best results possible. Please feel free to contact your financial advisor at any time. If you do not currently have an advisor at Select, please reply to this email and one of our senior consultants will contact you promptly.

Best Regards,

Imants Katlaps

Managing Director



Now that the dust has settled and the Brexit bed has been made, Britain is coming to terms with what it means to sleep in it—or to actually leave the European Union. Calls for a second referendum are dying out. Conservative and Labour party leaders have pledged to stand firm in their commitment to follow the voters’ decision. With a Brexit of some form on the horizon, let’s take a look at the current situation and what may come to pass in the future.

Watch out for falling sterling

One of the most immediate and quantifiable effects of the Brexit decision has been a fall in the value of Britain’s currency. The pound sterling (or GBP) was down about 10% from its value just before the June 23 vote. Most leading economists agree that a disengagement from the rest of Europe reduces the country’s growth prospects, leading investors to shy away from the pound sterling.
There is concern is that foreign investors, on whom the country’s economy is highly dependent, will take money out of less liquid assets, such as property. As reported in the The Guardian newspaper, a number of UK property investment funds, including M&G Investments, Aviva Investors and Standard Life Investments,were temporarily suspended in the weeks following the Brexit vote, as investors withdrew funds. Conventional wisdom says continued investor nervousness about property is likely to add downward pressure on the pound...
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