By George Prior
Six out of 10 investors are now actively seeking to move assets out of Britain as a perfect storm looks set to hit the UK economy, reveals a new poll.
The survey of more than 740 clients carried out by deVere Group, one of the world’s largest independent financial advisory organizations, which has $12bn under advisement, comes as the pound plunged to its lowest level for a decade late on Sunday amid growing fears the UK is heading for a no-deal Brexit.
It also follows Monday’s report by the Office for National Statistics (ONS) that finds the outlook for the general economic situation for the year ahead is worse than at any point since the final quarter of 2011.
Nigel Green, the CEO and founder of deVere Group, notes: “There is a legitimate and growing sense amongst those who were polled that in order to build and safeguard wealth, assets should be moved outside of the UK.
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“It comes amid a slew of negative official data and public sentiment regarding Britain’s economic outlook over the next few years.
“Clients have expressed that they feel there’s a closing ‘window of opportunity’ to transfer their UK-based financial assets within the next few months.”
He continues: “Investors are seeing a perfect storm brewing: the UK’s slowing economy, weak global economic growth, the pound at a 10 year-low, the increasing possibility of an interest rate cut and the risk of a no-deal Brexit pushing the UK into a recession.
“Increasingly they’re now actively looking to take action to mitigate the risks to their wealth – as well as benefitting from the opportunities – through established, international financial planning solutions.”
It’s not just individuals and families. It has been widely reported that firms in the City of London alone have already committed to moving many billions out of the UK to prepare for Brexit – and this figure is expected to increase with many leaving details of their plans unpublished until the Brexit deadline on October 31.
Last month, Nigel Green noted: “There is no end in sight to the embattled British pound’s plight with both the current Prime Minister Boris Johnson and the leader of the official opposition Labour Leader Jeremy Corbyn promoting policies that will deliver fresh – and serious – blows to the currency.”
The deVere CEO concludes: “The poll underscores that the UK is no longer an attractive place for investors.
“The UK is now at a critical point – perhaps the most critical since the global crash. Many are simply not prepared to risk their wealth and are considering international options.”
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.