(Bloomberg) -- Carnegie Investment Bank AB, which manages $17.2 billion for clients, sold all of its U.K. holdings as opinion polls narrowed ahead of the June vote to exit from the European Union.
“We had equities and corporate bonds in Britain before the vote,” chief strategist Henrik Drusebjerg said in a telephone interview on Monday. “We started selling off our U.K. holdings to absolute zero maybe a month before the vote,” he said. He wouldn't give the value of the assets sold.
The Stockholm-based bank is staying out of U.K. investments because uncertainty remains too large a factor regarding negotiations to leave the EU, or even if Prime Minister Theresa May will secure one, the strategist told Bloomberg Radio earlier on Monday. A separate survey of 83 money managers commissioned by NN Investment Partners revealed that Brexit and the potential breakup of the EU was deemed the biggest investment threat globally for the investors.
“It will definitely end with a deal that is so bad they will either get an election about this new bad deal, or they will have to have a parliamentary election before that,” Drusebjerg said in the radio interview. “It's very possible that Britain will never reach Brexit because I think down the road it will be obvious that the deal they will get will be really, really bad for the economy.”
Brexit is shaping up to be the worst of a slew of nationalist sentiment that's hitting the global economy, the strategist said, citing a potential Donald Trump victory in U.S. elections, a constitutional vote in Italy in December to limit the power of the Senate and parliamentary votes next year in Germany and France.
That could result in the election of more politicians who advocate trade barriers, which would be negative for investors, he said.
To contact the reporters on this story: Colin McClelland in Johannesburg at cmcclelland1@bloomberg.net, Markus Karlsson in London at mkarlsson21@bloomberg.net, Caroline Hepker in London at chepker@bloomberg.net. To contact the editors responsible for this story: Neil Callanan at ncallanan@bloomberg.net, Ross Larsen
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