Almost half of UK investors think Brexit will be good for business
However, an additional proportion think Donald Trump’s presidency will have a negative impact and many are concerned about record low interest rates
44% of UK investors have said they think Brexit will actually have a positive impact on their investment plans for the coming year, according to new research from IW Capital.
In light of ongoing political turbulence both at home and abroad, 2.21 million UK investors have an increased risk appetite for 2017 and are seeking new investment classes, while 2.45 million investors have said that 2016’s political will shape their decisions this year “more than anything else”.
However, the poll of 1,000 individuals with between £10,000 and £250,000 worth of investments also found that 44% think Donald Trump’s presidency will have a detrimental effect on their 2017 investment plans and only 27% have faith in Theresa May’s ability to promote investment value as part of the Brexit deal.
36% of respondents were also concerned that the Bank of England’s decision to cut interest rates to a record low of 0.25% last year, as well as its recent announcement that the rates will be held at this level, will negatively impact their investment strategy. 3.19 million said they are now reevaluating their plans as a result.
Despite this, 27% of those surveyed believe entrepreneurs and private sector businesses will “play a critical role” in driving private sector growth over the coming year.
Luke Davis, CEO of IW Capital, commented: “It’s interesting to note investors’ plans in light of the slump in interest rates and leadership discontent; transition brings opportunity, and this is reflected in today’s research.
“With investors looking to new investment classes as we enter into 2017, there is clearly a huge amount of confidence towards the country’s entrepreneurial capabilities, its resolute private companies and the potential of our innovative high-growth businesses to drive economic growth in 2017.”