The survey was carried out by MJ Hudson.

Although 17 per cent of fund investors outside the UK said that they felt the UK was less attractive since the Brexit vote, an identical percentage found either that markets had performed better than they had expected after the vote, according to research by MJ Hudson.

Around the first anniversary since the UK voted to leave the European Union, MJ Hudson surveyed 300 fund managers and fund investors, in the UK, Europe and around the world, asking them to express their opinions and experiences. The firm found despite fund managers and investors expecting the industry to move major headcount out of the UK, the impact on the industry may not be as significant as thought. 

The report, called WOW, That’s What I Call The Asset Management Industry Post-Brexit, Vol. 2, found that the general sentiment amongst both fund managers and investors is that Brexit will have a negative impact on the UK asset management industry. Around 41 per cent of fund managers expected UK products to see reduced allocations (against 16 per cent expecting increased allocations).  Whilst 28 per cent of investors agreed that UK products, in general, would experience reduced allocations, almost as many (25 per cent) anticipated increased allocations to UK products. 

“Since the results of the Brexit vote last year, fund managers have feared that uncertainty in the UK’s status would impact investor activity,” said Matthew Hudson, chief executive of MJ Hudson. “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.”

Hudson added: “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.”

Although this study gathered the views of institutional investors in particular, the ripples generated by Brexit will still be felt by all sectors of financial services, including wealth management.

This publication recently reported that a recent survey by CFA Society UK found that only 42 per cent of EU nationals are confident they will continue to work in the UK investment management industry after Britain leaves the EU bloc.