The United Kingdom's decision to leave the European Union was the single most important event of the second quarter of the year for investment funds registered in Finland because they hold almost five billion euros worth of assets in the United Kingdom, estimates the Bank of Finland.
“The funds not only held direct assets in the UK, but markets worldwide reacted to the result of the referendum, which in turn affected the value of the funds,” it states in a press release.
The most popular target countries for investments by funds registered in Finland
2. The United States
5. The United Kingdom
Source: The Bank of Finland
The value of the funds was affected particularly by the sharp fall in share prices and the pound in the immediate aftermath of the referendum.
The Bank of Finland also points out that approximately half, or 224, of investment funds registered in Finland held assets in the United Kingdom at the end of June. The total value of the assets, 4.7 billion euros, only accounted for 4.6 per cent of all assets held by these funds.
The United Kingdom is nonetheless the fifth most popular target country for investments by funds registered in Finland – especially among equity and bond funds. Equity funds, for example, saw the value of their investments fall by 0.7 billion euros and received redemption requests worth an additional 0.7 billion euros in June, the press release indicates.
Some real estate funds operating in the United Kingdom suspended or restricted the redemption of fund units after an unusually high number of investors sought to redeem their shares in the aftermath of the membership referendum. Investment funds registered in Finland, however, do not have direct assets in funds that suspended trading, according to the Bank of Finland.
Aleksi Teivainen – HT
Photo: Irene Stachon – Lehtikuva
Source: Uusi Suomi