Financial Brexodus?

Financial services want to relocate post-Brexit

Financial News

Brexodus fears for UK equity funds overblown, says Morningstar

The investor flight from UK equity funds since the 2016 Brexit referendum does not amount to a “mass exodus”, according to Morningstar. The influential analyst claims only a handful of funds have suffered significant outflows.

According to Morningstar, funds investing in UK companies have posted net outflows of €16.7bn between June 1, 2016 and the end of October 2018.

“That sounds like a lot of money, but it isn’t,” said Morningstar. The outflows represent only a small fraction of the €528bn invested in UK equity funds at the start of June 2016.

In fact, UK investors have invested a net €177.5bn into long-term funds between June 2016 and October 2018, Morningstar said.

Although UK equities continue to be out of favour — the most recent Bank of America Merrill Lynch fund manager survey showed the UK to be the most disliked region — outflows have been “exacerbated by fund-specific issues on a small number of the biggest funds in the category”, said Morningstar.

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Has there been a 'Brexodus' of EU citizens since the referendum?

Around living in the UK are citizens of another EU country. That's about 6% of the UK population, according to the latest figures covering the year to June 2018.

That compares to 3.4 million in the the EU referendum. Overall, the EU citizen population in the UK has gone up by an estimated 35,000 in the last 12 months, an increase of 1%. Between 2016 and 2017, the number increased by 240,000, an increase of 7%.

This may represent a slight slowing down in the rate of EU population growth, but the available figures aren't completely clear.

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Dublin tops list in financial Brexodus -

Dublin remains the most popular choice for financial service companies looking to relocate post-Brexit, according to EY.

To-date 27 financial services firms have committed to relocating staff or operations to Dublin since Britain voted to leave the European Union in 2016.

EY said assets worth nearly €877m are being transferred from the UK to other EU countries ahead of Brexit in a bid to protect their clients and investors from the impact of any Brexit outcome.

The latest relocation figures for Dublin are up from 21 in the last quarterly Brexit Tracker from EY.

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