The EU referendum result marks the start of a long process and there will now be a substantial period of negotiation between the UK government and the EU about the terms of the UK's exit.
In the meantime we continue to work hard on behalf of all of our customers and advisers.
We are a financially strong company and have successfully steered our business and customers through many times of change and uncertainty over our 168-year history.
Our multi-asset funds - including our £78.5 billion with-profits fund which is one of the biggest in the UK - invest world-wide across many different types of assets, such as shares, bonds and property, in order to spread the investment risk. This risk-managed investment approach is designed to help our customers’ investments withstand short-term market volatility and achieve steady growth over the long-term.
Prudential Portfolio Management Group (PPMG), the investment strategists and 'manager of managers' for Prudential in the UK, had increased international diversification in Prudential's funds ahead of the referendum by reducing exposure to sterling and UK assets over the last year, while also increasing cash positions and exposure to European, US and Asian properties.
PPMG Investment Director Andy Brown said: "The referendum result changes the investment climate significantly. Our assessment is that we should plan for a ‘hard’ Brexit scenario. While the UK will continue to operate within the EU as the government brokers an exit deal, there are considerable uncertainties regarding business investment and consumer confidence. This is likely to bring further sterling vulnerability in addition to the falls seen to date, while economic growth could fall sharply to between 0% and 1% during the period of renegotiation."
We suggest that any customers who are considering withdrawing from or surrendering a policy on account of current market conditions, should seek professional financial advice before making any final decision.
We will continue to focus our efforts on helping advisers and meeting the long-term savings and investment needs of our customers.
See further details of PPMG’s economic outlook following the referendum.
If you missed our EU referendum results WebEx you can listen to the recording here.