Brexit wipes €36bn from value of UK fund assets

The value of UK funds’ assets under management has dropped by more than $40bn (€36bn) in the three weeks since Britain’s vote to leave the EU, largely due to the plunge in the pound, fund flows data company EPFR said yesterday.

Losses were concentrated in equity and money market funds, and reflected the combined impact of lower asset prices, net outflows, and the fall in sterling’s exchange rate since the June 23 referendum on EU membership.

The fall to $468bn of assets under management from $510bn before the vote marks a drop of 8.2%, roughly the scale of the depreciation in sterling over the period. EPFR said roughly four-fifths of the decline in assets was due to the currency fall.