Some 39% of fund managers and investors globally feel Brexit has had little or no impact on the UK asset management industry so far, while 20% perceive a slowdown in activity owing to uncertainty – according to the latest MJ Hudson report, which surveyed more than 300 fund managers and fund investors in the UK and abroad, aiming at understanding their views on the impacts of Brexit on the UK asset management industry.
Conversely, 9% of the respondents noted that activity and performance in the UK were benefiting from added attention as well as from the short-term benefits of a weaker pound, while 14% feel that the UK has become a less attractive market after the referendum. From this share, 17% were fund investors from outside the UK.
From those with positive views, 17% of the investors and managers surveyed considered that markets had performed better than they expected and than fund managers had feared.
Another finding of the survey is that 41% of fund managers expect reduced allocations in UK products, against 16% expecting increased ones. Whilst 28% of investors agreed that UK products would experience reduced allocations, 25% anticipated increased allocations.
MJ Hudson’s CEO Matthew Hudson, said: “Since the results of the Brexit vote last year, fund managers have feared that uncertainty in the UK’s status would impact investor activity. Our research shows that, even before the results of the Brexit negotiations are known, fund managers are exaggerating the impact on investor appetite for UK products. Indeed, across the board, our research shows that institutional investors are looking to increase investment activity in the next 12 months – any initial period of introspective uncertainty appears to have passed.
“Quite apart from the draw of London as a global centre for asset management, the ability for UK managers to easily set up parallel fund structures within jurisdictions such as Luxembourg, means that there is little to be feared – and much to be gained. Structuring vehicles across multiple jurisdictions provides a new level of flexibility for investors and fund managers alike, protecting against economic and regulatory change in both the short and longer term. Working with a team such as MJ Hudson can help ensure that the move to a multi-jurisdictional model with the required substance is quick, robust and cost-efficient.”