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19.
June
2016.
For immediate release: Brexit - How Safe Are Global Investments?

Press Release - London, 19-6-16

Brexit - How Safe Are Global Investments?

Uncertain times lay ahead. In the midst of a referendum campaign, and without any tangible outcomes, it is difficult to foresee how the economy will adapt.
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Understandably, this is an area of concern for anyone with a financial interest within the EU, such as private and corporate investors. As the FTSE 100 drops below 6000* for the first time in over four months amidst fears of a recession, with indications that some investors are opting to sell shares, are there any investment options that won't be affected by leaving the EU? We consider the potential impacts of the Brexit Campaign, how this may affect investment options and what opportunities are open to investors in a yet uncertain, post referendum economy.

Investment in Growth

23rd June 2016marks the date of the EU referendum - it's a date looming for most people working, managing or investing in UK businesses. With campaigns rich in promises, and void of many answers to the "what if's" from both sides, it is unsurprising that investors with stakes in the EU market have concerns.
 
Concerns mirrored by many leading businesses, for example, UK manufacturer Rolls Royce have voiced their views suggesting that leaving the EU, with a highly interconnected European manufacturing program, would open the doors to their US competitors. Rolls-Royce chief executive Warren East told the Today Program, Brexit would "limit any company's ability to plan and budget for the future". The critical period for rivals to swoop in will occur during the consultation period, resulting in losses for the business. This "pause" in companies making investments into new technology and products during the period of an unknown economic future will significantly impact on advancement opportunities, profits and ultimately, in some cases, even the future of their organisation.

Simon Calton, CEO of the Carlton James Sky Watch Inn Group and Rycal Group, adds, " The prospect of the U.K. leaving the EU could have major implications to global markets. However, I believe diversity is the key to securing our future and protection against the crazy, ever changing global market in which we find ourselves"

If we look at, for example, the performance of some of the better known funds this year, many have seen unexpected declines based on previously unseen exposure to extraordinary factors e.g. Brexit, slowdowns in China, regime change (and then back again) in Brazil, Indian foreign policy, various Russian financial interventions, all contributing to volatility in a traditionally stable arena, albeit unfortunately in the wrong direction for most investors. There is no sign to slowdown in this level of uncertainty while the emerging markets are still vying for supremacy on the global stage.

Hence, many hedge fund managers, classic CFO's and private investors are deciding that looking further afield, and diversity, indeed then, would appear to be the preferred way to find new opportunities which can offer a return largely unaffected by the decisions made within the European market, and also other global factors.

As an example, as the demand for hospitality in the USA continues to grow, many areas are seeing that existing hotels soon reach 80%+ occupancy leaving those without suitable rooms to travel further afield. Notably, Carlton James borrower Sky Watch Group is expert in this field and so leverage this expertise in its acquisition of hotel/hospitality sites and land in emerging high demand regions and mid-scale investment areas. In addition, the strategy here is to look for sites which have significant additional ‘Value Generators' (factors which drive revenue to a development) e.g. proximity to an oil field, a shopping mall, highways, and many others, some of which are almost entirely unexpected. Add to this some state-of-the-art corporate structuring of Carlton James Investment Group, and this proposition adds up into an investment with solid returns, relatively protection from outside factors, with built-in hedging and risk severely mitigated. These investments are entirely between the USA and UK, thus providing a viable diversity option, and already hedge against ‘Brexit' for most portfolios.

So maybe it does pay to look further afield?

As it stands, no one really knows how the outcome of referendum will impact on the economy, but uncertainty in itself can cause investors to look for ways to diversify their portfolio. Taking advantage of opportunities that arise with the potential to grow, without concern from the Brexit campaign, could be the answer to those looking for increased activity from their investment portfolio.

For more information on Carlton James Sky Watch Inn investments mentioned above please visit http://www.rycalgroup.com/newinvestors

or contact

Alison Daff @ Sierra Kilo PR London

T: +44 (0) 203 290 6001| E: skpr@sks-london.co.uk



*close of business
15/6/2016

** Today Program, Radio 4 15/6/2016

 

  • Ends -

 

Notes for Editors

Carlton James Private &Commercial Funding offer expert advice in the fields of Property, Finance and Protection. Helping to raise funding and finance for commercial ventures, they offer lending solutions for even the most complex funding requirements. The thorough Due Diligence process helps secure relationships with private financiers, investment angels and Venture Capitalists to enable funding of investment opportunities.