As you may be aware Greece today passed the IMF deadline for their debt repayment.  This was expected following the announcement that a referendum will be held on 5th July to decide if Greece should accept their creditor's terms as part of debt refinancing.    

Until this referendum is held much is unknown. However it is clear that either a yes or no vote would result in considerable instability in Greece.  

In respect to the wider impact of a potential exit from the Eurozone it is important to note that Greece represents only a very small part of the Eurozone.  Whilst there will be further volatility in markets while the issue plays out it is not likely to have a significant impact on longer term investment returns.

The comments below from a number of respected commentators may assist in putting some context on this issue: 

"The fortunate thing about this risk is that we have known about it for five years, and European banks have minimal exposure to Greek debt and there are tools in place to ring fence the contagion risk"
Matt Sherwood Head of Investment Strategy Perpetual Investments 

"Ä Greek exit from the Eurozone would represent a step into uncharted waters but Eurozone policymakers are much better placed to contain the fallout than they were a few years ago".
David Williams Senior Economist for Europe Alliance Bernstein

Greece no longer poses a systemic risk for the Eurozone, and Europe is more confident than it was earlier that Greece can be ring fenced.
Nader Naeimi Portfolio Manager AMP Dynamic Markets Fund
 
We expect markets to remain volatile over the coming weeks, but this should be viewed as a short term issue which should not influence your long term objectives. 

We will keep this issue under review however should you wish to discuss this matter in more details please feel free to contact our office.