Where are investors looking after UK’s exit? Anywhere but the UK

Bloomberg

Investors are setting their sights away from the U.K. in their search for markets less vulnerable to fallout from Britain’s vote to exit the EU.
Amundi SA sees value in emerging-market rates, given that further central bank accommodation is possible after Brexit. While others appear to snub Europe altogether and turn to U.S. stocks, Indosuez Wealth Management favors the region’s equities with the exception of the U.K. Here’s what investors say:

Amundi SA
Amundi sees opportunities in emerging-market rates as Brexit is likely to spur further policy accommodation by central banks, global emerging markets strategist Abbas Ameli-Renani said.
The fund is selectively receiving Central and Eastern European rates, with Poland among them.
Amundi sees value in Russian and Indonesian rates as central banks engage in a gradual, but credible, rate-cut cycle.
Amundi is more cautious on emerging-market currencies after the U.K. vote, given weaker prospects for growth, and sees Poland’s zloty, South Africa’s rand and Turkey’s lira as vulnerable. The firm favors being selectively underweight on Central and Eastern Europe excluding Russia, and maintains a bearish view on Asian currencies, Ameli-Renani said.
JPMorgan Asset Management
U.S. equities could benefit from a flight to quality in the aftermath of Brexit, John Bilton, global head of multi-asset strategy said.
A relatively weak pound could benefit U.K. sectors that have substantial overseas income streams, such as pharmaceuticals, staples, energy and mining.
Recent U.K. events reinforce JPMorgan Asset Management’s “up-in-quality” bias and geographical preference for the U.S. Brexit is a local issue with the epicenter in U.K. assets, specifically in sterling, and is unlikely to stoke a significant negative reaction in the U.S. economy or U.S. assets further down the road, Bilton added.
Aberdeen Asset Management Plc
The company added to its holdings of emerging-market rates after the U.K. vote, based on the view that Brexit may delay U.S. rate increases, emerging markets investment manager Viktor Szabo said. He expects the U.S. Federal Reserve to be “out of the game this year” with a “lower for longer” environment. This will drive flows into emerging-market assets, given the lack of yield in developed markets, Szabo said.

Julius Baer Group Ltd
Julius Baer upgraded emerging-market equities after Britain voted to leave, based on the view that the Fed will postpone rate increases and that central banks stand ready to act to support the economy, chief strategist Christian Gattiker said in an interview.
The Bank of Japan will probably be among the central banks that may ease policy in coming weeks, he added.