LONDON (15 March 2024) – In response to Chancellor Jeremy Hunt’s introduction of the Brit ISA, ISS Market Intelligence (ISS MI), a leading global provider of data, analytics, insights, examines the latest trends in investor behaviour in the UK and Europe.
The Brit ISA policy, aimed at directing investments towards UK companies, comes at a time when data indicates a shifting landscape in investor preferences. Analysis conducted by ISS MI reveals a notable decrease in demand for domestic equity funds not only in the UK but also in key European markets such as Germany and France.
Statistics show that the UK, Germany, and France are all experiencing net outflows from domestic equity funds, highlighting a broader trend away from home-based investments. Moreover, performance does not emerge as a primary driver of these outflows, indicating deeper shifts in investor sentiment and strategy.
European investors are increasingly accessing foreign equity markets through cross-border funds domiciled in Ireland and Luxembourg, showcasing a growing appetite for global diversification.
Of note is the UK, which has witnessed the largest decline in Assets Under Management (AUM) in domestic equity funds. Changing demands from UK investors have caused domestic equity fund AUM to drop from 39% of total equity fund AUM in 2018, to 25% in 2023. This shift, also seen across Europe, underlines a significant change in investment behaviour.
“European investors and fund selectors are increasingly investing abroad in search of equity returns and are leaving their home bias at home.” said EMEA Research Lead, Benjamin Reed-Hurwitz.
ISS MI provides our clients with comprehensive data, analytics, and insights to empower informed decision-making.
For further information visit https://insights.issgovernance.com/posts/demand-for-home-based-investments-declining-across-europe/ or contact mi_emeasales@issmarketintelligence.com.
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About ISS Market Intelligence
ISS Market Intelligence (ISS MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Morgan Stoll
Analyst, Marketing
press@issmarketintelligence.com
New Brit ISA Policy: ISS MI Data Shows Decline in Demand Across Europe for Domestic Investments
LONDON (15 March 2024) – In response to Chancellor Jeremy Hunt’s introduction of the Brit ISA, ISS Market Intelligence (ISS MI), a leading global provider of data, analytics, insights, examines the latest trends in investor behaviour in the UK and Europe.
The Brit ISA policy, aimed at directing investments towards UK companies, comes at a time when data indicates a shifting landscape in investor preferences. Analysis conducted by ISS MI reveals a notable decrease in demand for domestic equity funds not only in the UK but also in key European markets such as Germany and France.
Statistics show that the UK, Germany, and France are all experiencing net outflows from domestic equity funds, highlighting a broader trend away from home-based investments. Moreover, performance does not emerge as a primary driver of these outflows, indicating deeper shifts in investor sentiment and strategy.
European investors are increasingly accessing foreign equity markets through cross-border funds domiciled in Ireland and Luxembourg, showcasing a growing appetite for global diversification.
Of note is the UK, which has witnessed the largest decline in Assets Under Management (AUM) in domestic equity funds. Changing demands from UK investors have caused domestic equity fund AUM to drop from 39% of total equity fund AUM in 2018, to 25% in 2023. This shift, also seen across Europe, underlines a significant change in investment behaviour.
“European investors and fund selectors are increasingly investing abroad in search of equity returns and are leaving their home bias at home.” said EMEA Research Lead, Benjamin Reed-Hurwitz.
ISS MI provides our clients with comprehensive data, analytics, and insights to empower informed decision-making.
For further information visit https://insights.issgovernance.com/posts/demand-for-home-based-investments-declining-across-europe/ or contact mi_emeasales@issmarketintelligence.com.
###
About ISS Market Intelligence
ISS Market Intelligence (ISS MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Morgan Stoll
Analyst, Marketing
press@issmarketintelligence.com
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