General Election 2017
The UK Prime Minister, Theresa May, called a general election for Thursday 8th June 2017.
The outcome of the election is unpredictable with a narrowing of opinion polls coupled with uncertainty as to the impact on the overall vote share of support for minor parties together with Brexit opinions.
The election is a significant event for financial markets and it is possible that this may trigger unusually large trading volumes coupled with high levels of volatility around the date of the election. This is likely to be most pronounced on Friday this week, but could continue for several weeks in the event of a hung parliament.
Friday 9th June is also a bank holiday in the Isle of Man, which may cause additional complications.
We would therefore like to reassure you that Capital International is well prepared for any unusual trading activity including:
- All offices will be open as usual on Friday
- Dealing, operational and customer service teams will be well staffed and are prepared for additional volumes and volatility
- Capital’s systems are scalable and enable us to deal with high volumes of order flow
- The investment management department is similarly staffed and prepared
- Our investment strategies are already relatively defensive in their positioning
- Additional staff are on call on Friday should the need arise.
During periods of heightened volatility, it is critically important that investors keep grounded in the longer-term view, so as to avoid getting caught out by sudden market movements. Furthermore, markets can behave in unexpected ways as was seen following the Brexit referendum and short-term volatility can present opportunities to build on long term positions.
Should you have any concerns please do not hesitate to contact your relationship manager.