UK equity funds have bled more than $2bn over the past two months, highlighting the extent of investor unease as a no-deal Brexit becomes increasingly likely.
Investors have pulled a net $2.4bn from funds exposed to the UK stock market since the start of October, according to data provider EPFR Global.
Britain’s trade talks with the EU have become increasingly fraught in recent weeks, with both sides warning that the UK may crash out of its Brexit transition period without a trade deal in place. As the talks entered their final stretch ahead of the Sunday deadline, UK prime minister Boris Johnson said a no-deal Brexit was a “strong possibility”.
The latest withdrawals bring UK equity fund outflows since the Brexit referendum to $42bn — almost 17 per cent of total assets held in the strategies in June 2016. This figure is for flows out of open-ended UK equity funds globally until the end of October 2020.
The continued Brexit uncertainty has also hit the appeal…