Over one third of high-net-worth investors (HNWI) in the UK feel more optimistic about the impact of Brexit compared to a year ago, according to new research from investment firm Rathbones.
The study revealed that 36% of HNWIs, defined as those with over £100,000 in savings or investable assets, felt more positive about Brexit than they did this time last year, with just 23% mentioning Brexit when asked about the factors that could threaten their wealth. In contrast, 30% of HNWIs mentioned Brexit when asked last year.
Further macroeconomic factors such as economic uncertainty, low interest rates and inflation ranked above Brexit in the list of investor concerns of what might negatively impact their wealth.
However, Rathbones also revealed that less than a fifth of regular savers said they were more confident than last year about the effect of Brexit on their finances, while 20% of savers stated that Brexit was a key threat to their savings.
The firm has credited the difference in outlook between the groups to HNWIs being more internally diversified in their investment portfolio, which allows them to move more easily into different asset classes. It also suggested that Brexit concerns are lower for the wealthier as their opinions could be influenced by their investors. This could involve carrying out their own contingency planning by seeking advice and protecting their wealth.
Rathbones investment director Robert Szechenyi stated that the investors increasing confidence in Brexit was down to the fact that they had two years to make their own plans for the future. Szechenyi urged those who had not already made plans to protect their portfolio to consider doing so now.
He said that diversifying a portfolio across multiple asset classes was a “good step in mitigating any risk from economic uncertainty”.
“Other economic concerns such as high inflation and low interest rates, although harder to plan for the long term, can also be provisioned against,” Szechenyi advised.
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