Risk to both EU and UK on vote for Brexit

Ariel Bezalel, a bond fund manager at Jupiter, has said a UK exit from the EU will damage the European project and could lead to a global shock leading to significant volatility across all risk assets.

Bezalel, who manages the Jupiter Strategic Bond Fund, said that while the immediate reaction to Brexit would be a fall in the value of the pound and UK assets, the long-term impact might not be particularly negative. “My concerns about Brexit centre more around the political scene where the EU’s standing would be greatly diminished without the UK. In turn, the UK’s standing globally would likely be greatly diminished. In addition, Brexit would create political uncertainty in the UK as it is highly probable that Prime Minister David Cameron would be forced to step down,” Bezalel said. He added that Brexit would cause risk assets to become more volatile throughout the EU, as it would encourage anti-establishment movements across Europe.