Edward Evans is a managing editor with Bloomberg Gadfly. He is former managing editor for European finance at Bloomberg News.

Brexit spooked Britain's individual investors far more than the financial crisis of 2008, at least according to figures released by a trade association on Tuesday.

Brexit Fright
Individual investors pulled £3.5 billion from U.K. funds in June
Source: The Investment Association

The Investment Association says consumers pulled 3.5 billion pounds ($4.6 billion) from U.K. funds in June. That's much more than the 493 million pounds they withdrew in the October following the collapse of Lehman Brothers, Laith Khalaf at Hargreaves Lansdown points out.

Property funds suffered the most this time, with 1.4 billion pounds of outflows. Seven money managers were forced to suspend trading in their real estate funds after Britain's vote to leave the European Union prompted investors to pull their money.

The June 23 vote sent the country's FTSE 250 index down percent almost 14 percent in two days' trading. In July, this benchmark of U.K.-exposed stocks recouped almost all that loss, meaning nervous investors who did withdraw their money would have missed out. As the Brexit shock quietened in July with the rapid formation of a new government, those outflows may have stabilized. But don't be lulled into thinking political risk has gone away.

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  1. It's also more than the 561 million pounds they pulled in January 2008, the worst month for withdrawals in the financial crisis, according to Hargreaves Lansdown.

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