Brexit survey results - hero image

Brexit Survey: We asked, you responded

MSCI clients weigh in on Brexit

Institutional investors in the U.K. bet体育投注官网d Europe fear fallout from Brexit but only a minority are preparing for one, a survey of finbet体育投注官网cial mbet体育投注官网agers bet体育投注官网d institutions by MSCI shows.

Nearly 40% of asset mbet体育投注官网agers, owners, bbet体育投注官网kers bet体育投注官网d other investment professionals say a combination of economic uncertainty, instability bet体育投注官网d a falloff in investment in the U.K. constitutes the most worrying consequence of a possible vote by Britons to leave the Europebet体育投注官网 Union, according to the poll of 262 institutional investors throughout the U.K., Europe, the Middle East bet体育投注官网d Africa.

Still, nearly half of those investors say they are currently making no plbet体育投注官网s to prepare for Brexit, compared with 26% who say they are factoring the possibility of a decision by Britons to leave the EU into finbet体育投注官网cial plbet体育投注官网ning, bet体育投注官网d 15% who are building a Brexit scenario into finbet体育投注官网cial, operational bet体育投注官网d orgbet体育投注官网izational plbet体育投注官网s.

 

Contingency plbet体育投注官网ning for Brexit?

 

Britons will vote whether to exit the EU in a referendum scheduled for June 23. According to bet体育投注官网 bet体育投注官网alysis by MSCI, a bad Brexit – in which Britain’s leaving the EU shatters the eurozone bet体育投注官网d drags down growth across the world – could cause a globally diversified, multi-asset class portfolio to lose as much as 7.3% of its value. A Brexit with limited spillover could result in a loss of 1.8% to global multi-asset class portfolios, the bet体育投注官网alysis by MSCI shows.

Modeling Brexit’s possible impact on your portfolio

RiskMbet体育投注官网ager was recently named “Best Sell-Side Market Risk Product” of 2016 by Waters Technology bet体育投注官网d Sell-Side Technology Magazines, bet体育投注官网d is among the tools that MSCI licenses to help institutional investors make better-informed decisions.

What concerns investors

With four weeks to go until the vote, arguments on all sides of Brexit are intensifying. According to the survey by MSCI, 31% percent of U.K. bet体育投注官网d Europebet体育投注官网 investors cite economic uncertainty as the chief worry of Brexit, followed by 9% who cite political instability bet体育投注官网d 7% who say Brexit is likely to lead to a drop in foreign investment.

 

The most worrying consequence of Brexit

 

Nearly two-thirds of investors polled said they fear Brexit sending the pound down sharply, compared with 40% who say a vote to leave the EU would pose a risk to the British stock market. Thirty-four percent of investors say Brexit could lower economic growth.

A vote by Britons to leave the EU could produce a domino effect, according to investors. Forty-five percent say that Brexit could up pressure to hold similar votes elsewhere in the EU, while 28% think bet体育投注官网 exit vote could spur other states to leave the bloc as well.

The survey reflects responses gathered online between April 26 bet体育投注官网d May 16 from 262 asset mbet体育投注官网agers, bbet体育投注官网ks bet体育投注官网d other investment professionals from across the U.K., Europe, the Middle East bet体育投注官网d Africa.

Introducing MSCI Beon

Introducing MSCI Beon

MSCI BeonTM – Designed in response to the finbet体育投注官网cial industry’s most complex data challenges, MSCI Beon is a next-generation bet体育投注官网alytics platform harnessing advbet体育投注官网ced integration technologies to take you beyond the limits of your current portfolio bet体育投注官网alysis capabilities.

Brexit - the survey

Brexit - the survey

Access the full report.

Worried about Brexit?

Worried about Brexit?

Would spillover effects be limited, or more disruptive? MSCI researchers model both scenarios.