Vanguard comments on the outcome of the EU referendum
Vanguard | 24 June 2016
The United Kingdom (UK) has made a major decision on its future.
The referendum is not itself a binding decision but will need to be incorporated into an Act of Parliament. The UK will then need to give notice to the EU under the terms of the Lisbon Treaty. A two-year – extendible – negotiation period will follow from that date. Therefore, it is likely to be a long time before the full implications of Brexit become clear. The result may lead to wide industry changes over the long term and we have a contingency working group in place to assess those changes.
Irrespective of the result, Vanguard is here for the long term and will not be diverted from our mission to lower the cost of investing to give investors the best chance for investment success. Importantly, investors should resist the temptation to make drastic changes to their investment portfolios as reacting to market events can often do more harm than good. To help weather the market volatility, Vanguard encourages investors to maintain a long-term outlook with clear goals in place. They should also ensure their investment portfolios are broadly diversified with a mix of global equities and high-quality bonds. History has shown that the market rewards discipline and patience over the long-term.