You are here: Home - Investing - Experienced Investor - News -

Brexit no deterrent for UK investors

0
Written by:
12/02/2019
Investors continue to focus on UK shares and fixed income in spite of Brexit, finds new research by Willis Owen.

By the end of the tax year, 57% of Willis Owen clients will have invested in UK equities, and 46% said UK fixed income – significantly more than any other asset class. Surprisingly, the Eurozone also features highly, in spite of some dismal growth numbers from across the Channel.

Only around a quarter (24%) of UK ISA investors say Brexit has prompted them to reduce the amount they hold in UK assets. Around half (52%) say it hasn’t affected them either way, while 3% say they have invested more because of it.

UK retail investors believe UK equities look cheap: one in ten (9%) strongly agree with this view. 54% of ISA investors believe UK equities currently look attractive over a five-year period, and just 11% think they look unattractive.

This chimes with many asset allocators and advisers.  Jim Wood-Smith, chief investment officer private clients at Hawksmoor Investment Management, said: “With business seeming to be preparing for a sticky outcome, so the potential grows for something rather better to come from anything other than No Deal. This is what underlies our conviction that whatever happens with you-know-what (Brexit), there are cheap assets in the UK. And that many will look back on early 2019 and wonder how they were so blinded by the short-term as to have missed the opportunities presented on a silver salver.”

Willis Owen agreed that Brexit means many UK stocks are now undervalued. If pointed out that if Brexit is delayed or even abandoned, the UK stock market could see a significant rise. Alternatively, if there is a ‘bad’ Brexit, there could be a fall in the value of the pound that could benefit many FTSE 100 companies.

Adrian Lowcock, head of personal investments at Willis Owen, said: “There is no doubt that Brexit has had a negative impact on the UK stock market, but this means that many stocks are now undervalued and represent a very attractive proposition for investors with a longer term view. However, there may also be short-term volatility with UK equities.

“If Brexit is delayed or even abandoned, the UK stock market could see a significant rise. And if there is a bad Brexit, there could be a fall in the value of the pound that could benefit many FTSE 100 companies which are predominately internationally focused and whose earnings are in US Dollars. Our research would suggest that the opportunities around UK stocks are not lost on many ISA investors.” It currently recommends the Merian UK Smaller Companies, Lindsell Train UK Equity and Man GLG Undervalued Assets funds in the UK.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Vanishing cashpoints: 250 free-to use ATMs close each month

Cashpoints are disappearing at an “alarming” rate, leaving many people struggling to pay for essential goods and services, a consumer...

Close