LONDON, Sept 8 (Reuters) - UK-focused equity funds saw
record outflows of 1.2 billion pounds ($1.58 billion) over the
past three months as investors worry about a no-deal Brexit and
the impact of the coronavirus pandemic, data from fund network
Calastone showed on Tuesday.
The United Kingdom left the EU on Jan 31 but is trying to
hammer out a trade deal with the bloc by the end of the year.
The divorce veered into fresh crisis this week after London
threatened to undermine the exit agreement unless free trade
terms are agreed by next month.
The British economy also shrank by a record 20.4% in the
second quarter due to COVID-19 restrictions, underperforming the
United States and the euro zone.
Edward Glyn, head of global markets at Calastone, said the
two issues were "prompting investors to dump their UK holdings".
UK funds saw 667 million pounds of outflows in June, 368
million in July and 195 million in August, while non-UK funds
collectively saw a total of 1.6 billion pounds in inflows over
the same period, Calastone said.
More than two thirds of UK-based fund flows by value pass
across the Calastone network each month.
($1 = 0.7577 pounds)
(Reporting by Carolyn Cohn
Editing by Peter Graff)