Less than half of investors happy with portfolio performance

More than half of UK-based investors are dissatisfied with the performance of their investments in the past 12 months, with geopolitical conflicts and high inflation listed as major challenges, RAW Capital Partners has found.

The Guernsey-based investment management firm commissioned an independent survey of 756 UK-based investors, all of whom have investments in excess of £25,000, excluding the value of their residential property, savings and pensions.

The research revealed that 47% of investors are pleased with how their investments have performed over the past 12 months.

A similar proportion (45%) said that high inflation has made it more challenging to manage their investments, while a third (32%) stated that rising interest rates have negatively impacted their portfolio performance over the past two years.

RAW Capital Partners added that the majority of investors (57%) believe the global political and economic landscape in 2024 has been more turbulent than at any other time in the past decade, with 38% stating that geopolitical conflicts and instability had affected their strategies over the past 12 months.

When asked about the actions they are taking to manage their portfolios in the current economic climate, two in five (38%) said that diversifying their investment portfolio is a priority in order to help them manage market volatility.

Although there is an appetite to diversify, just two in five (40%) investors are confident their investments will perform well in the next year.

Interim managing director at RAW Capital Partners, Ben Nichols, said: "Our research clearly illustrates the impact that recent economic and geopolitical turbulence has had on investors in the UK. Many are struggling to adapt to political uncertainty and macroeconomic trends like high inflation and interest rates – the result is that less than half are happy with how their investments have performed in the past year.

"With UK and US elections approaching, and it being unclear how the UK economy will perform in the second half of the year, there could be more challenges to navigate. So, it is positive to note that two fifths of investors are turning to diversification as a priority.

"We are by no means out of the woods when it comes to geopolitical conflict and economic headwinds, so it is important that investors continue to protect their portfolios against market volatility by assessing which asset classes and investment tactics can best enable them to achieve their long-term financial goals. Drawing on the benefits that diversification in non-correlated asset classes can provide will continue to reap rewards."

Share Story:

Recent Stories

Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.