Nearly half of leading institutional investors are concerned about Britain leaving the European Union next year, according to a new survey.
Forty-seven per cent of global institutional investors polled by FTI Strategy Consulting and Research this month said that they were concerned about a 2016 Brexit harming their portfolio.
Investors remain sceptical, however, that British voters will ultimately back Brexit, with just 19 per cent of respondents saying that it was likely the UK would leave the EU.
But Brexit was far from the top concern for the more than 110 investors polled, who together manage portfolios valued at over $7 trillion (£4.7 trillion).
Investors said they were more likely to be worried about developing nations struggling to service debt, terrorist and security issues, cyber security and data breaches, oil prices, conflict in the Middle East and, perhaps most surprisingly, Donald Trump winning next year’s US presidential election.
“As the Donald Trump roadshow progresses thorough the 2016 Republican Party presidential primaries, 15 per cent of investors consider it will lead to him becoming the next US president,” said FTI managing director Dan Healy. “The expectation is he won’t prevail, but on balance he’s concerning the investment community.”
Terrorism and security issues were the most-cited concern, with 59 per cent of investors saying they were worried such risks would harm their portfolio.
Cyber security and data breaches and a Trump victory were the second most-worrying risks, with 57 per cent of respondents saying they were cause for concern. Fifty-two per cent were concerned about the price of oil decreasing further, while 51 per cent cited conflicts in the Middle East.