Brexit Would Negatively Impact U.S. Equity Investors Exposure To The Eurozone

Written By Elizabeth Saunders, Partner

April 25, 2016

New York & Chicago – Clermont Partners, a strategic financial communications advisory firm, recently conducted a survey of 100 U.S. based institutional investors in European equities representing more than $30 billion in assets under management. The results clearly show that short term concern of the UK exiting the European Union is weighing on the decision of U.S. investors to buy (or sell) Eurozone stocks. When asked if the possibility of Brexit has been factored into their current Eurozone portfolio holdings, 84% of the respondents said they have not made substantive changes to their existing portfolios, but 61% expected their exposure to Eurozone stocks to decrease over time. Where it was unclear in their minds at this point whether Brexit would occur or not, the uncertainty has kept them on the sidelines – presenting neither a buying or selling opportunity. A further 93% said they were concerned about the impact Brexit would have on the valuation of their equity holdings in Eurozone stocks, expecting continued downward pressure from the region.

But the U.S. based investors have a greater concern for the ripple effect Brexit would have on Eurozone stocks. They believe an exit would see a dramatic retrenchment of U.S. investor interest in the region, far broader than negative impact President Obama warned of after meeting with UK leaders recently. The findings are more in line with comments made by International Monetary Fund Managing Director, Christine Lagarde who predicts an exit by Britain would lead to greatly increased financial volatility, loss of confidence and reduced investment in the Eurozone region.

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About Clermont Partners

Clermont Partners is a boutique strategic communications firm that offers a wide range of stakeholder relations counsel addressing the nexus between financial communications and issues management. Its fundamental premise is a commitment to provide and execute sophisticated communications strategies that enable clients to realize their valuation and reputation objectives. Clermont Partners’ core capabilities are rooted in capital markets communications extending to global investor relations programs, mergers and acquisitions, IPOs and capital raisings, shareholder activism, complex corporate events, corporate and executive media programs, restructurings and the management of reputational and industry issues.

The team has more than 75 years of combined experience and broad sector knowledge, expertise and global relationships with institutional investors, analysts, investment bankers, venture capital and private equity firms, financial as well as trade media and other influencers across the Industrials, Healthcare and Life Sciences, Energy, Telecommunications, Media & Technology and Consumer industries. They have architected financial and corporate relations programs for companies undertaking major acquisitions or corporate transformations, executing award-winning investor relations programs or managing reputational issues and crises.

For further information:

International and Media Inquiries: 
Hugh Barker
+1 (917) 826-0344

U.S. Inquiries:
Victoria Sivrais
+1 (312) 690-6004

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