No-deal Brexit fears push investment fund outflows to $28bn
August 12, 2019 / David Ricketts
Withdrawals from UK investment funds have jumped on fears that Britain will crash out of the EU in October without a deal, with investors pulling almost $30bn from UK equity funds since the 2016 referendum vote. Heavy outflows returned after it became clear that pro-Brexit MP Boris Johnson would replace Theresa May as Conservative Party leader and prime minister. Since January alone, investors have pulled $5.5bn from UK-focused funds, with almost $3bn of this exiting during June and July, according to EPFR, the data provider.Johnson, who has assembled a pro-Brexit cabinet, has suggested he would be willing to take the UK out of the EU on October 31 — the latest deadline agreed with Brussels — without having secured an exit deal. At the end of last month, Sajid Javid, the chancellor of the exchequer, announced an extra £2bn of funding to help the UK prepare for a no-deal Brexit.