Exclusive Exclusive: Union Investment CIO Warns Against Brexit

The chief investment officer of Germany’s third-largest investment firm Union Investment believes the greatest threat to the markets this year is a possible British exit from the European Union. “Germany in particular needs the U.K. as part of the E.U. as a traditionally market economy-oriented country,” Jens Wilhelm told Handelsblatt. “A Brexit would be a big loss for the E.U., particularly for Germany,” he added. Mr. Wilhelm also said he expects strong volatility, but no share price crash in 2016. “Investors aren’t euphoric,” he said. Shareholders are cautious and have mixed feelings about the new year, which is a good thing, Mr. Wilhelm said. Because of solid worldwide economic growth, the funds manager anticipates yields for investors who are able to keep calm during volatile stretches, he said. Mr. Wilhelm expects the German blue-chip DAX index to reach a maximum of 12,000 points during 2016.   Read the full interview in Tuesday’s Handelsblatt Global Edition at 12:00 Central European Time.