Psigma IM buys gilts and cuts Euro equities as Brexit vote gains momentum

Psigma Investment Management's investment team has increased its weighting to 10-year gilts and reduced exposure to European equities in order to defend against the increasing likelihood of the UK's departure from the EU.

Head of investment strategy Rory McPherson (pictured) said gilts are likely to benefit in the event of a Brexit, as the UK government would buy them in order to curb a sudden potential increase in inflation. Hermes' Williams warns Brexit could lead to more QE Analysts at Credit Suisse last month warned a Brexit would provide an "immediate financial shock" to the UK, with prices sharply inflating as money leaves the country and foreign investment slows. However, McPherson said rather than fighting inflation by raising interest rates, the government would be more likely to purchase g...