Two thirds of investors say they will sell if Britain leaves EU

Two thirds of institutional investors say they will sell UK equities in the event of a British exit from the European Union.

A majority of UK and international investors believe that there will be a negative impact on investment markets if the UK votes to leave the EU, according to research undertaken by the Investor Relations Society (IR Society) in partnership with QuantiFire.

Results are consistent across all geographies from investors who invest in companies of all sizes and across all sectors.

The research was designed to examine the opinions of fund managers and buy-side analysts regarding the likely impact that a Brexit would have on investment markets.

In total, 407 responses were obtained from 361 institutions, including 11 of the top 20 global investors by assets under management.

Among the key findings were that 78 per cent of investors said the potential for Brexit was now an important factor when making investment decisions.

Some 88 per cent said a Brexit would have a negative impact on UK investment markets in the short term (less than a year).

In terms of equities, 64 per cent said they would reduce or sell, while 54 per cent said they would reduce their exposure to UK debt securities if a Brexit looks likely.

Financial services and real estate investments are expected to be the main losers if Brexit occurs.

Some 44 per cent said there would also be winners in the UK economy, with exporters and industrials most preferred, while 30 per cent said the effect of Brexit would be neutral to positive for UK securities over the medium to long term.

Press Association