By Jason C. Berrie, CFA

To Our Clients and Consultants:

The UK’s EU referendum result was not what we anticipated, as we own less treasury bonds than desired (the only assets that are up at the moment). However, we are otherwise conservatively positioned and do not expect any company or issue specific problems with any asset that we own. If there is a major sell-off, I would expect us to be small buyers, optimistically able to buy a few oversold names, and sell a few that are holding in. If there is only a small sell-off, then we will be taking risk off. I think that by the end of the day we will see something in-between; somewhat muted volatility and not much more spread movement than we see in most typical months (except that it’s all happening in one day).