The UK has fallen from favour as an investment hub among sovereign wealth funds following the vote to leave the EU, according to research by Invesco.
The survey canvassed 97 sovereign investors, including sovereign wealth funds, state pension funds, central banks and government ministries that hold $12tn of assets in total, the FT reports, and found that Brexit “poses a threat to the long-term attractiveness of the UK”.
On a scale of one to 10, the UK’s rating in terms of how attractive it is has slipped from 7.6 in 2015 to 5.5 this year, an unprecedented drop according to Alex Millar, head of European, Middle Eastern and African sovereigns at Invesco.
The report noted: “Brexit is seen as a significant negative for UK investment, and investment sovereigns with European interests questioned the future of the UK as an ‘investment hub’ for Europe, given uncertainty over taxes on imports and market access.”
Meanwhile Germany’s appeal has increased, the report found, with its rating moving from 7 in 2015 to 7.8 in 2017 as it is seen as more stable.