For individual investors in the UK

Trust TV: Brexit – its impact on UK markets with Job Curtis

Job Curtis, ASIP

Job Curtis, ASIP

Portfolio Manager

29 Mar 2021


It was a long time coming.

Just seven days before the deadline at the end of last year – and some 4 ½ years after the original membership referendum – the UK finally struck a ‘no tariffs, no quotas’ trade deal with the EU.​​​​

Brexit is a process not an event. It’s early days, of course, and there are many aspects of the deal’s implementation that have yet to be finalised but, in this episode of Trust TV, we’re discussing the impact on the UK economy, and stock market, of this landmark event.

Janus Henderson Investment Trusts is delighted to welcome Job Curtis, portfolio manager of the UK-focused City of London Investment Trust, to the Trust TV studio.

Watch Job discuss the early market reactions, the ‘on the ground’ challenges being faced by businesses, the differing effects on large and small cap stocks, the sector winners and losers, the outlook for 2021, and other themes relevant to investors focused on UK markets.

For a European perspective, watch Jamie Ross, portfolio manager of Henderson EuroTrust, who also joined us in the studio.

Trust TV with Henderson EuroTrust


Asset allocation Expand

The allocation of a portfolio according to an asset class, sector, geographical region, or type of security.

CapEx Expand

Capital expenditure or capital expense is the money an organisation or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land.

Commodity Expand

A physical good such as oil, gold or wheat. The sale and purchase of commodities in financial markets is usually carried out through futures contracts.

Compounding Expand The process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will generate earnings from both its initial principal and the accumulated earnings from preceding periods. Compounding, therefore, differs from linear growth,
where only the principal earns interest each period. Cyclical Expand A cyclical stock is a stock that’s price is affected by macroeconomic or systematic changes in the overall economy. Cyclical stocks are known for following the cycles of an economy through expansion, peak, recession, and recovery. Most cyclical stocks involve companies that sell consumer discretionary items that consumers buy more during a booming economy but spend less
on during a recession. Dividend Expand

A payment made by a company to its shareholders. The amount is variable, and is paid as a portion of the company’s profits.

Fiscal Stimulus Expand Action by the government to encourage the private sector economic activity by engaging in targeted, expansionary monetary
or economic policies. An economic stimulus is commonly employed during times of recession. Policy tools often used to implement economic stimulus include lowering interest rates, increasing government spending, and quantitative easing. Large capitalisation stocks (large caps) Expand

Larger companies as defined by market capitalisation total market value of a company (calculated by multiplying the number of shares in issue by the current price of the shares) tend to be easily bought or sold in the market (highly liquid).

Market capitalisation Expand

The total market value of a company’s issued shares. It is calculated by multiplying the number of shares in issue by the current price of the shares. The figure is used to determine a company’s size, and is often abbreviated to ‘market cap’.

Monetary policy Expand

The policies of a central bank, aimed at influencing the level of inflation and growth in an economy. It includes controlling interest rates and the supply of money. Monetary stimulus refers to a central bank increasing the supply of money and lowering borrowing costs. Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.

Yield Expand

The level of income on a security, typically expressed as a percentage rate. For equities, a common measure is the dividend yield, which divides recent dividend payments for each share by the share price. For a bond, this is calculated as the coupon payment divided by the current bond price.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.


Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.


The information in this article does not qualify as an investment recommendation.


Marketing Communication.






Important information

Please read the following important information regarding funds related to this article.

Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions.
    Specific risks
  • If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
  • Where the Company invests in assets that are denominated in currencies other than the base currency, the currency exchange rate movements may cause the value of investments to fall as well as rise.
  • This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
  • Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
  • The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
  • Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
  • The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.
  • All or part of the Company's management fee is taken from its capital. While this allows more income to be paid, it may also restrict capital growth or even result in capital erosion over time.
Job Curtis, ASIP

Job Curtis, ASIP

Portfolio Manager

29 Mar 2021