Mercer Trust Company, the investment fiduciary for the Program, has provided some general commentary related to “Brexit”:
“Yesterday, the UK voted to leave the European Union, and discussions about how the UK could operate independently from its European neighbors will begin in earnest. The outcome of yesterday’s referendum is obviously significant and global capital markets are reacting strongly to the news. We believe the effects will lead to heightened volatility over the intermediate term, although it’s clear that the longer-term effects are still uncertain.
For context, as of right now, we have effectively given up the gains of the last 8 days or so as the market was increasingly pricing in a “Bremain” vote (a vote in favor of remaining part of the Union). While the negative numbers you are likely to see are large, we would remind you of the gains that we saw, especially in international markets, as the vote neared and investors (wrongly) assumed that the UK would vote in favor of remaining part of the EU. It will take some time for investors to fully digest and given several different paths to exit the uncertainty will keep markets on edge."
View a recording of our latest webinars:
Understanding what your 401(k) is costing you and your firm
Administering Best Practices
Feeling Exposed? Take our short quiz to see if your firm is benefitting from maximum fiduciary protection.
Start Fiduciary Quiz
Interested in understanding the fiduciary considerations in offering a brokerage window? Click here.
We are pleased to inform you that a Glossary of Investment Terms has been added to the Program's website. The glossary is intended to assist Program participants, beneficiaries, and those eligible for the Program, better understand the Program's investment options. To access the glossary click here.