Dutch firm NN Investment Partners reveals its Brexit winners and losers

Brexit could see an impact on foreign direct investment into the UK from the US and The Netherlands, according to NN Investment Partners.

But any negative impact of Brexit on foreign investment into the UK could be tapered by positive impacts elsewhere, according to a market perspective from the Dutch investment house that was previously known as ING.

Pieter Jansen, senior strategist (Insurance) of NN Investment Partners, said in a statement today that the impact of Brexit on global growth may be small but, “the uncertainty around future ties between the UK and the EU may cause shifts in foreign direct investments in the UK and multinationals may also reconsider the extent of their presence in the UK,” he said.

The US accounts for 23.2% of total direct foreign investments in the UK, followed by The Netherlands (16.4%) with Luxembourg (7.5%) and France (7.3%). Other important investors from outside the EU include Japan (4.1%) and Switzerland (4.5%).

However, despite a negative feeling around the UK’s international standing Jansen notes there will also also be winners from the Brexit result. 

“Some sectors and companies may benefit from the current currency moves. We have seen a stronger US dollar and a much weaker pound sterling,” he said. “This may be positive for UK-based pharmaceutical firms, for example.

Uncertainty

“Global companies with costs in sterling may also benefit in the short run and the uncertainty about the UK’s long-term relationship with the EU may lead to some companies reallocating parts of their businesses to EU countries.

“Other European financial and business centers, such as Frankfurt, Paris, Dublin and Amsterdam, may benefit from this as well,” added Jansen

Despite such views, the City has yet to see any firm decisions of any form of mass exodus, despite reports of potential exit rumblings from firms such as HSBC and Morgan Stanley.

And, as reported, former Chancellor George Osborne was seen to be countering any concerns about London’s standing as an international financial centre, with the release of a joint statement from a number of major financial institutions, pointing to support of the UK’s capital.

ABOUT THE AUTHOR
Gary Robinson
Deputy Editor, International Investment and Head of Video at Open Door Media Publishing. A fully qualified journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as an IFA.

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