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Brexit Update

  • Jun 30, 2016

On June 23rd, citizens of Great Britain voted to leave the European Union by a

margin of 51.9% to 48.1%. Immediately after the votes were counted, large moves

in financial markets were experienced around the world. These moves are

particularly large because the exit result was unexpected, based on recent polls

before the vote.

 

Britain's decision creates uncertainty for the Eurozone, including the possibility of

slower economic growth, new trade and monetary policies that may be needed and

the potential for other countries to also consider leaving the European Union.

Because the Eurozone is a substantial part of the world economy, these events will

certainly impact the U.S. economy on the margin.

 

Market reaction is typical for this type of event: flight-to-safety into safer sectors

(such as U.S. Treasuries and the U.S. Dollar) which rallied on Friday with riskier

sectors (such as stocks) falling on Friday. As would be expected, movements in

international markets are particularly large relative to U.S. markets. Central Banks,

such as the Federal Reserve, will continue to provide appropriate liquidity to support

markets which should help towards preventing a very adverse outcome.

Nonetheless, markets are likely to remain volatile over the next few days and

perhaps in the weeks ahead.

 

In this environment, it is important for us to re-emphasize the core investment

philosophy of Foresters Investment Management Company, Inc. (FIMCO)—remain

focused on long-term objectives and not react to short-term market movements. We

will watch the markets carefully over the upcoming weeks and discuss the

implications of Brexit with the managers of our international strategies. In addition,

FIMCO will continue to review its portfolios to see if current volatility creates

investment opportunities, while monitoring exposure to more volatile sectors.

 

For more information about First Investors mutual funds from Foresters

Financial, you may obtain a free prospectus and summary prospectus by

contacting your Financial Services Representative, calling 800 423 4026 or

visiting our website at foresters.com. You should consider the investment

objectives, risks, charges and expenses carefully before investing. The

prospectus and summary prospectus contain this and other information

about the funds, and should be read carefully before you invest or send

money. An investment in these funds is not a bank deposit and is not

insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC)

or any other government agency.

 

Neither Foresters Financial Services, Inc. nor its affiliates offer legal or tax advice.

Please consult your tax adviser before making any tax-related retirement decisions.

 

Foresters Financial™ and Foresters™ are the trade names and trademarks of The

Independent Order of Foresters, a fraternal benefit society, 789 Don Mills Road,

Toronto, Canada M3C 1T9 and its subsidiaries, including Foresters Financial Holding

Company, Inc. (FFHC). Foresters Financial Services, Inc. is a registered broker-dealer

and subsidiary of FFHC. Securities, life insurance and annuity products are

offered through Foresters Financial Services, Inc. Insurance products are issued by

Foresters Life Insurance and Annuity Company, New York, or The Independent Order

of Foresters.

 

Foresters Investment Management Company, Inc. (FIMCO) is an affiliate of Foresters

Financial Services, Inc. and the investment adviser to the First Investors Funds.

Foresters Financial Services, Inc. Member of Securities Investor Protection

Corporation (SIPC).

 

 

LF#16-005101B                                                                                                  BREXIT

413995 US (06/16)

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