Brexit Day on October 31 is nearing and the outcome is still unclear. PM Johnson has orchestrated a prorogation of Parliament to limit the opposition’s time to work out a legislative delay of Brexit and has reaffirmed his position to complete Brexit even with “no deal”. However in the meantime, the government initiated a hearing in front of the Supreme Court in order to repeal the prorogation and enable the Parliament to work again. Further, a law has been approved which obliges Johnson to apply for a postponement of the Brexit Day if no agreement with the EU has been reached until October 19. The next round of talks with Jean-Paul Juncker was initiated this week.

Although a delay of Brexit remains the most likely scenario, there is still a small risk of a hard Brexit which would have an impact on the currency and the whole economy. For investors it means that their equity investments might lose value if the underlying companies are affected negatively by Brexit. Nevertheless, we expect a number of UK companies that have their major source of turnover outside of the UK not to react to a potential negative Brexit outcome or even to be affected positively by it. In order to enable you to participate in the performance of such companies, we placed a tracker certificate in subscription, tracking the performance of 20 selected stocks which we expect to outperform their remaining UK peers in case of a hard or no-deal Brexit.