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05 October 2018

Financial Times: £9bn pulled from UK company funds since Brexit vote


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UK investors have pulled nearly £9bn from funds investing in British companies since the Brexit referendum, as uncertainty surrounds the terms of the country’s impending exit from the EU.


According to figures from the Investment Association, the asset management trade body, retail investors have pulled large sums from UK equity funds on a monthly basis since the vote in June 2016.

Figures for August 2018 also show the first net loss of investment, on aggregate, across all funds available for sale in the UK since the referendum, including those invested overseas. Investors pulled £217m from UK authorised funds over the month.

Funds invested in UK companies were the most unpopular among investors in August, registering net withdrawals of £429m, while funds buying European shares lost £303m.

North American and global funds were more popular, however. Investors put £183m into global funds and £98m into North American funds, with Japan funds also drawing in £25m from UK investors.

While mixed asset funds saw new net sales of £539m, other major asset classes — including fixed income, equities and property — saw investors pull money out. 

Chris Cummings, the IA’s chief executive, said “the uncertainty in the Brexit negotiations” had dented investor confidence in August. [...]

Full article on Financial Times (subscription required)

Investment Association figures



© Financial Times


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