Investors pull billions from UK on prospect of no-deal Brexit

[scooterscot]

Capital flight accelerates

More than $4bn has been pulled from UK equity funds since Theresa May announced her decision to step down as Britain’s prime minister as fears mount that the UK is heading for a no-deal Brexit under her successor, Boris Johnson.


Investors have withdrawn $4.2bn from UK equity funds since late May, according to EPFR, a data provider. Outflows since the Brexit referendum in 2016 have climbed to $29.7bn.


Luke Ellis, chief executive of Man Group, the UK-listed hedge fund manager, said investors had put the UK into the “too hard to think about basket”.


Neil Dwane, global strategist at Allianz Global Investors, said the UK stock market was “unloved, under-owned and cheap” and Mr Johnson’s positive rhetoric would fail to shift investors’ cautious stance.


“Boris must first resolve Brexit. It will always get in the way until he does,” said Mr Dwane.


Portfolio managers running 250 global equity funds with $450bn in assets have also reduced their UK exposure, with the average holding sinking to 7.9 per cent, according to Copley Fund Research.


This is below the trough reached immediately after the 2016 referendum and down from a peak of 11.5 per cent in 2011 when Copley started the survey. As much as $2bn has been withdrawn from the UK by this group of managers over the past six months.


“We’re seeing a marked shift out of Britain and into mainland Europe by international fund managers,” said Steven Holden, chief executive of Copley Fund Research.

source: Subscribe to read | Financial Times

[Mordac]

Doom-mongering from the FT? Who'd have thunk it...?

[meridian]

Doom-mongering from the FT? Who'd have thunk it...?

Is “£4b removed” fear-mongering, or pointing out an inconvenient fact?

Brexiters preferring to call facts fear-mongering, instead of engaging in a discussion about whether it’s a good or a bad thing. Who’d have thunk it...?

[Paddy]

Pol Pot in Cambodia did his own version of Brexit and started with the year zero. The country is doing fine now,

[sasguru]

Managed to get Pater to sell his acres in West Sussex (last year) and house in London (this year). Persuaded him that golf in the Algarve was much better for his health and wealth.
Think he lost at least half a million by waiting so long rather than doing it in 2016 as I advised.
But at least my inheritance is secure now

[Paddy]

Managed to get Pater to sell his acres in West Sussex (last year) and house in London (this year). Persuaded him that golf in the Algarve was much better for his health and wealth.
Think he lost at least half a million by waiting so long rather than doing it in 2016 as I advised.
But at least my inheritance is secure now

I have never liked the idea of making money from property prices as it is a bad way for the country's economy to grow. Having said that, I have done very well with my properties. The UK property values have stagnated or decreased over the past couple of years. The value of my villa (priced in Euros) in south Europe has increased 500% in five years; not that I will ever want to sell it. Furthermore, the council tax (local taxes more correctly) are only £50 per year and we get better service than the UK.

As for lifestyle, the countryside is open and free unlike the fenced off the restricted UK. I have a super-large garden growing fresh produce with a surplus and nearby 4 hectors growing wine grapes.

When I am not home, the neighbours will care for the garden and property without asking them; that is totally opposite to the UK where neighbours will winge at any opportunity or tip rubbish on the property.

[sasguru]

As for lifestyle, the countryside is open and free unlike the fenced off the restricted UK. I have a super-large garden growing fresh produce with a surplus and nearby 4 hectors growing wine grapes.

.

Now that is a good use of Hectors.
Put 'em to work growing grapes rather than harassing contrcators with IR35 notices.

[scooterscot]

When I am not home, the neighbours will care for the garden and property without asking them; that is totally opposite to the UK where neighbours will winge at any opportunity or tip rubbish on the property.

Same happens with our place. The veggie patch is watered, mail collected, and even the bins taken out by the neighbours in our absence. Always try to offer compensation but they'll not hear of it.

[darmstadt]

I was thinking of closing my Post Office savings account but upon finding the savings book, last withdrawal was in 1984, there only seems to be 18p in it so I'll leave it in there, every little helps....

[AtW]

I was thinking of closing my Post Office savings account but upon finding the savings book, last withdrawal was in 1984, there only seems to be 18p in it so I'll leave it in there, every little helps....

Think about compound interest, this changes everything over a few thousand years