Exposure to currency risk after the referendum vote

The biggest and most sustained financial impact of the Brexit vote has been within gilt markets (where yields have fallen to historic lows) and currency markets over the two months since the referendum.

Sterling is likely to remain volatile for the foreseeable future as economic data is released and announcements about Britain’s future trading relationships are made.

In the absence of any scheme-specific circumstances, trustees should be hedging their currency risk by 50 per cent.

Click here for the full briefing note.