Investment is already pouring out of Scotland ahead of the independence referendum on Sept. 18, the Financial Times reports.
The best quote in the story is from this unnamed money manager: “Most professionals are cacking themselves. They are terrified of independence and a new regulatory regime.”
Indeed, Credit Suisse issued a note last week warning of a “negative feedback loop” if Scotland goes independent.
One fund, Kennox Asset Management, has put out a statement to its clients asking them to keep calm. But a lot of investors are simply asking, why bother with the risk? The FT reports that $US186 million has left the country recently, after net inflows in the billions came to a screeching halt:
Scotland’s six biggest fund houses posted collective net outflows of €144m [$186 million] in the first seven months of the year, according to figures compiled for FTfm by Morningstar, the data provider.
This is a sharp decline on the collective inflows recorded in the preceding four years of between €3bn and €10bn for the companies, which are Aberdeen Asset Management, Scottish Widows Investment Partnership, Baillie Gifford, Kames Capital, Martin Currie and Standard Life Investments.