Which Asset Classes are Investors Turning to in the 2017/18 Financial Year?
The beginning of the new tax year on 6 April marks a vital time for British taxpayers to reflect on their current financial strategy. As they do so, it is imperative that investors take into account new legislative reforms and unfolding economic events that will impact the way they manage their investment portfolio over the ensuing 12 months. The current 2017/18 financial year takes on added significance due to a series of sweeping reforms to Britain’s tax framework, including changes to inheritance tax and Isa limits, and buy-to-let tax relief. At the same time, interest rates are being held at a record low 0.25% and are not likely to increase until at least the beginning of 2018. Looking to the major political and economic events set to dominate the year ahead, British investors must also account for the inevitable change taking place as a result of Brexit and the snap General Election scheduled for 8 June.
In the months following Britain’s decision to leave the European Union (EU), the private sector proved resilient, propelling productivity and stimulating economic growth across the country. As a consequence, Britain is currently the second fastest-growing advanced economy in the world; GDP is on track to increase by 2% at the close of the year, according to the IMF. UK consumers are also optimistic about the future opportunities that Brexit will open to scaling SMEs – a recent report found that 54% of UK adults believe Britain leaving the EU will enable UK businesses to expand globally, equating to approximately 27 million people across the British Isles.
In light of these political and economic shifts that have reshaped Britain’s investment landscape during the past year, IW Capital’s latest report delves into the sentiment of UK investors to reveal how they are managing their financial strategy over the coming 12 months. Based on a nationally representative sample of 1,000 UK investors with portfolios between £10,000 and over £250,000 – excluding pensions or property – this report uncovers which asset classes investors are incorporating into their investment strategy in the new financial year. The findings are enlightening, presenting an investor community willing to embrace new opportunities outside of traditional asset classes that will support the country during this vital period of economic transition.
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