The UK’s scheduled departure from the EU has dented its popularity with sovereign wealth funds, according to Invesco. Natasha Turak reports.

Brexit has made sovereign wealth funds less confident over the prospect of the UK as a long-term investment centre, according to a recent report from investment management firm Invesco.

The report surveyed 97 sovereign investors and found that the UK’s departure from the EU “poses a threat to the long-term attractiveness of the UK”. Its future as a European investment hub faces mounting doubt “given uncertainty over taxes on imports and market access”, according to the report. Germany, conversely, has increased in attractiveness.

Increased geopolitical uncertainty is leading to a focus on perceived ‘safe haven’ international and home markets – namely the US, and Germany within the EU. India is growing in attractiveness among emerging markets, particularly because of its prospects for long-term economic growth.

“In developed markets, uncertainty over global interest rates is shifting focus to identifying markets to shelter assets, with Brexit and the US election cited as the factors of fastest growing importance to asset allocation,” wrote Invesco.  

This article is sourced from fDi Magazine
fDi Magazine

Global greenfield investment trends

Crossborder investment monitor

fDi Markets is the only online database tracking crossborder greenfield investment covering all sectors and countries worldwide. It provides real-time monitoring of investment projects, capital investment and job creation with powerful tools to track and profile companies investing overseas.

Click here to find out more about fDi Markets

Corporate location benchmarking tool

fDi Benchmark is the only online tool to benchmark the competitiveness of countries and cities in over 50 sectors. Its comprehensive location data series covers the main cost and quality competitiveness indicators for over 300 locations around the world.

Click here to find out more about fDi Benchmark

Research report

fDi Intelligence provides customised reports and data research which deliver vital business intelligence to corporations, investment promotion agencies, economic development organisations, consulting firms and research institutions.

Find out more.