Europe fund managers may flee UK after Brexit, survey says

LONDON • London’s asset managers could start to lose their investment talent to the continent and other markets once Britain leaves the European Union (EU), according to a CFA Society UK survey.

Just 42% of EU nationals that were polled said they plan to continue working in the UK after Brexit, the survey published yesterday showed. That compares to 16% who said they are already planning to leave, with the remainder undecided. The survey polled 1,109 investment professionals, about 330 of whom were EU nationals.

“While many of the outcomes of Brexit remain unclear, we can certainly expect a change in the profile of the investment management workforce in the UK,” said Will Goodhart, CEO of CFA Society UK. “Many EU professionals working here intend to move to other markets

once Britain has left. We may see this increasing over the coming months.”

Some 91% of EU respondents said the competitiveness of the UK as a financial centre had deteriorated since last year’s referendum. That compares to 71% of British respondents who said the same.

Meanwhile, UK firms are clamping down on marketing budgets, pushing one gauge of the health of the advertising industry to its lowest reading since the start of 2016.

About 70% of UK marketers held advertising spending steady over the third quarter, the Institute of Practitioners in Advertising (IPA) said in its quarterly Bellwether Report yesterday.

Uncertainty over the impact of Brexit negotiations was the primary source of paralysis, the IPA said in the report. — Bloomberg