Individual Investors


[Podcast] Aviva CEO on Brexit


Following the UK’s historic vote on June 23 to leave the European Union, Euan Munro, Chief Executive Officer of Aviva Investors, discusses the implications for financial markets and investments.

Euan considers the economic impact on the UK and the likely monetary and fiscal policy response, contagion risk, and what a Brexit means for long-term investment and the asset management industry.  


On the markets calling the vote wrong: “One of the things I’ve said consistently is that no-one has a crystal ball. We need to build portfolios that are robust to many different eventualities because these things can be so unpredictable.”

On the long-term impact to the UK: “It’s not difficult to make a call about the likely consequences over the next two years. There will be delays to investment projects and consumers will be more cautious. The long-term consequences are really a function of the trade agreement they come up with. It’s hard to know at this stage what that will be.”

On value: “Good value has been hard to define for some time. Investors will have to think very hard about where to find value.”

On the policy response: “I don’t think QE is necessarily the answer. The solution will rely on some kind of fiscal response. It’s time to pull out some of those weapons. …The interest rate response and fiscal response that’s triggered by this type of crisis will always benefit someone. Our job as asset managers is to work out who is in the best position to benefit from whatever twists and turns the global economy takes.”

On the potential impact for the asset management industry: “I would expect this to lead to further consolidation in the asset management industry.” 

Important information

Unless stated otherwise, any sources and opinions expressed are those of Aviva Investors Global Services Limited (Aviva Investors) as of June 28, 2016. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but has not been independently verified by Aviva Investors and is not guaranteed to be accurate. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. Past performance is no guarantee of future results.

The name “Aviva Investors” as used in this presentation refers to the global organization of affiliated asset management businesses operating under the Aviva Investors name. Each Aviva Investors’ affiliate is a subsidiary of Aviva plc, a publicly- traded multi-national financial services company headquartered in the United Kingdom.

Aviva Investors Americas LLC (AIA) is the named subadviser to the Virtus Multi-Strategy Target Return Fund and utilizes the services of Aviva Investors Global Services Limited (AIGSL) and its other affiliates (collectively, Aviva Investors) to manage the Fund. These affiliates are Participating Affiliates as that term is used in relief granted by the SEC. Mr. Munro is located in London and is associated with AIGSL.

Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.