In our just-published Summer 2016 Investor Letter, we explore the investor's pursuit of income generating investments. In our view, this has led to extended valuations in some of the income yield segments of the equity market, for example, utility stocks. If interest rates do remain lower for longer, then the extended valuations in the income-yielding sectors could remain elevated. The Investor Letter contains broader commentary on this topic.
Our last newsletter mentioned the potential issues surrounding the U.K.'s potential withdraw from the European Union (Brexit). Just a few weeks ago, the voters in the U.K. spoke at the ballot box and voted to leave the EU. We wrote a separate commentary on Brexit in the days following the vote; however, we include additional highlights in the Summer 2016 Investor Letter on the Brexit topic and more.