Four in five UK fund managers are worried that the government does not know what it is doing when it comes to Brexit negotiations for the asset management industry.
More than three quarters (77 per cent) are also frustrated by a lack of consultation with their industry, according to a survey of 300 fund managers and investors from around the world conducted by asset management consultancy MJ Hudson.
The UK asset management industry is the second largest in the world, but only three of the government's 12 negotiating priorities were deemed relevant to the industry by respondents. These were: a free trade agreement; providing certainty, and rights for EU nationals in Britain.
Investors from other countries viewed Brexit talks in a similar light. Almost two thirds (63 per cent) of global fund managers currently investing in the UK thought the government would not deliver a good deal due to weak understanding of asset management.
European fund managers are also more pessimistic about the Brexit outcome, with 76 per cent pessimistic regarding the UK government's ability to achieve an outcome which is acceptable to the asset management industry, compared to 53 per cent of their British counterparts.
But according to MJ Hudson CEO Matthew Hudson, investors are taking matters into their own hands while they wait for negotiations to progress. He said: "They are already implementing their own plans and setting up new EU offices and teams so that they retain and grow assets under management post-Brexit, however it plays out.”