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MCTDF – Impact of Brexit

June 28, 2017

Brexit has triggered a large sell-off of all risk assets, particularly those with exposure to the UK. Financials have been the hardest hit as London is the heart of the European bank system and the Head Office to the majority of the financial worlds European operations.

MCTDF invests in term deposits from the major 4 Australian banks only (ANZ, CBA, NAB and WBC) and therefore has no direct exposures to London’s financial issues. The MCTDF strategy has protected the portfolio and ensured a positive return each day.

Outcomes since 24th June referendum

There has been no change to the bank term deposit market, and zero impact from Brexit

Impact on MCTDF
MCTDF may benefit from wider term deposit margins as banks look to shore up their deposit base. We see no negative impacts.