Pictet multi-asset team cuts European equities ahead of 'coin toss' referendum

Increasing uncertainty

Pictet Asset Management's multi-asset team has reduced European equity exposure by more than half since December, as increasing uncertainty around the result of the "coin toss" UK referendum raises questions over the EU's future.

Polls continue to indicate strong public support for a Brexit in the run-up to June's referendum, with the 'leave' campaign currently trailing the 'stay' campaign by just two percentage points. As a result, the managers of the Pictet Multi Asset Portfolio have reduced exposure to European equities from 22.3% in December to 9.8% in March. Over the same period, the £12.2m fund has increased cash levels from 1.8% to 15.9%, while in March the team made a foray back into emerging market equities with a 5% allocation. Pictet's Cole: Brexit threat simply 'an opportunity for weaker sterlin...