Cutting exposure to European equities (including UK equities)

With the uncertainties in Brexit (UK leaving European Union), I took action and sold my unit trust in JPMorgan – Europe Dynamic Fund A(ACC) SGD-H.

The fund was purchased a year before Brexit on 11 July 2015. I did not expect that Brexit is going to happen on 23 June 2016.

The Europe Dynamic Fund was an aggressively managed fund with investments in European (including UK) equities. The objective is to maximise long-term capital growth.

The Geographical locations of these equities were:
21.5% in UK
19.0% in France
13.8% in Germany

With so much exposure in UK companies, I decided to quit this fund even as I suffered loss on redemption.

The launch price in 2014 was S$10.
When I bought it in 2015 it was priced at S$10.96.

Prices before and after the UK referendum were:
23 June S$10.51
24 June S$10.04
27 June S$9.66

I sold the unit trust at S$10.50 after some stability returned to the markets. I did not receive any dividends on this fund since the time I bought it.

The capital loss realised was 6.6% (inclusive of sales charge on purchase of the fund).

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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