Investors are leaving the British market and piling into overseas stocks and funds, according to the latest investment industry figures.

In September and October £335m flowed out of the popular “UK All Companies sector” while funds investing in Europe, Japan, North America and globally attracted inflows of £2.2bn between them, data from trade body the Investment Association has revealed.

Investors appear to be favouring Europe and Japan in particular. Over the two months, funds investing in Europe attracted £660m of net inflows (inflows after withdrawals) while Japan funds attracted £400m.

Tom Becket, of investment manager Psigma said: “It’s down to two perceptions: first, that the rest of the world is doing well compared with the UK; and, second, the overriding concerns about Brexit.”

The FTSE 100 has returned 9pc year-to-date but Japan, Europe and the US have all posted double-digit returns.

Europe’s recovery from the global financial crisis has lagged the US and UK. In euros, the Euro Stoxx 50 index has returned 59pc to investors over the past seven years compared with 171pc for the S&P 500 index in dollars.