Could Global Trusts Be the Answer to Brexit Concerns?

As investors pull £3.5 billion out of UK focussed funds, we examime the benefits of going global

Danielle Levy 11 August, 2016 | 3:59PM

The UK’s historic vote in favour of leaving the European Union has cast a shadow over UK-focused funds and investment trusts.

According to data from the Investment Association, the trade body for fund managers, investors withdrew £3.5 billion from UK funds during the month of June, eclipsing the £561 million that was withdrawn in January 2008.

Risk aversion towards UK equities following the ‘Brexit’ vote is also evident in the world of investment trusts. In the UK All Companies sector, the average discount to net asset value (NAV), which means the total value of assets held by an investment trust, was around 7% in early June. On 10 August it stood at 8.5%, according to Winterflood Securities.

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About Author

Danielle Levy  is a freelance journalist specialising in investment writing for Morningstar.co.uk

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