Foreign Investment - Foreign investors will withdraw from the UK if it were to leave the EU.
There are concerns that foreign investors will withdraw from the UK if the country leaves the EU. So far it is difficult to conclude that even the prospect of Brexit is slowing the flow of inward investment - across a number of measures, 2014 was a record year. Surveys indicate that research and development will be the focus of investment projects over the coming years - an area for which the UK is very attractive.
Yet there are concerns. For example, in Ernst & Young's 2015 UK attractiveness survey, 72% of investors highlighted that UK membership of the single market is at least "fairly" important to the UK's attraction as an investment destination. Although it is difficult to forecast the long term implications of Brexit, we do not expect an outflow of foreign investment in the short to medium term. That said, uncertainty could postpone inflows, particularly in the financial sector, and sterling could suffer an increase in volatility as a result.
If you would like to receive a copy of the white paper, 'If you leave me now', which explores the implications of Brexit for the UK economy and markets, and/or a copy of "Breaking up is hard to do" which explores the implications for investments and currency for investors, please contact us on +351 289 392484 or email us at info@privatefund.management.
Private Fund Management would like to thank Rathbone Investment Management of Mayfair London for their kind permission in allowing the reproduction of this "Brexit" article, and the "Five Myths" relating to the "Brexit" debate, leading up to the referendum.
Private Fund Management
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