Today the UK Supreme Court decided that Members of Parliament must be given a vote on triggering article 50, the formal mechanism for leaving the European Union.
This decision is likely to generate more political uncertainty which in turn is likely to cause more volatility in the FTSE 100 and EUR STOXX markets.
According to Hilbert Investment Solutions – the Anglo French structured products provider - volatility is the key to unlocking better returns from structured products.
Hilbert’s founder Steve Lamarque said, “Although the outcome of the ruling was widely anticipated by many commentators, the political uncertainty created is likely to increase volatility. For example, discussions about trade deals with the USA could increase volatility in European markets given a perception such a deal might have adverse consequences on the EU countries. Equally, we know that while hopes are running high in Downing Street for a potential US trade deal post Brexit, the new President is very strongly advocating an “America First” policy – which could impact on the detail of any new arrangement with the UK.
“Since the Brexit referendum vote, markets have been punctuated by short bouts of volatility leading to the industry offering investors some very good structured products. We believe in the coming months continued bouts of volatility will again open the door to new products, particularly around the time when Article 50 is triggered by the UK Government,” said Lamarque.
Notes to editors
About Hilbert Investment Solutions
The firm was established in 2012 by former Old Mutual head of structured products Steve Lamarque to specialise in cross asset, structured solutions covering equities, rates and commodities. The firm has offices in London and Paris.
It specialises in innovative, forward-looking investment solutions, often tailored to individual client needs. The team can design structures to meet a specific performance target, match an appetite for risk or satisfy environmental or social responsibility expectations.
Hilbert believes that delivery is just as important as structuring, with ongoing client support including high quality research which enables distributers to explain the rationale behind the tools and ideas, and how they fit within investment portfolios.
In March, Hilbert joined the UK Structured Products Association, and pledged to align to the UKSPA Code and utilise its product risk rating.
Hilbert Investment Solutions is regulated in the UK by the Financial Conduct Authority.
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