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Investors withdrew $446m from funds that specialise in UK equities in the week to Wednesday, marking the 10th straight outflow, according to EPFR Global. The withdrawal helped to push the net outflow from European equities funds to $166m and its 25th consecutive week of redemption.
“When it comes to the UK, there is a lot of concern about what is going to be happening with Brexit — the chance of there being a no-deal or a hard Brexit — the impact could be significant from day to day getting goods from the EU to more operational issues around trading securities,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors.
While capped by Brexit concerns this week, European funds have been dogged for the past several months by weaker economic growth compared with the US — where the economy and corporations are enjoying a boost from tax cuts and other stimulus — as well as political concerns around the rise of populism in Italy. [...]
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