Charting investor sentiment in times of change

19th May 2017

Political campaigning ramped up this week with each of the major political parties releasing their respective election manifestos. For businesses, the Conservatives, Labour and the Liberal Democrats offered some clarity as to their future plans for the private sector, recognising the vital role SMEs play in supporting economic growth and productivity. Over the next 13 days, each of the major political parties will be busy campaigning across the country, reaching out to businesses, consumers and investors.

In this period of transition, now is an ideal time for investors to consider the potential impact of future economic and political events on their investment strategies. To ensure our investors are aware of the latest market trends, last year IW Capital launched Access 42 – an exclusive investor community offering its members regular industry insights, delving into how landmark announcements are affecting the financial landscape.

Since its launch, Access 42 has delivered numerous market-leading research reports revealing the current sentiments and attitudes of UK investors. Regularly featured across national and trade publications, a summary of IW Capital’s recent reports is provided below.

Understanding Investor Sentiment in the Wake of Brexit 

Immediately following the EU referendum, IW Capital asked a nationally representative sample of investors how Brexit would impact their financial strategy. The report found the majority of British investors (52%) would consider supporting the UK’s SMEs through private investment despite uncertainty in the wake of the Brexit decision.

Investor Sentiment toward Record Low Interest Rates 

In reaction to the Brexit announcement, the Bank of England set interest rates to a record low 0.25% in August 2016. Following this decision, IW Capital commissioned research analysing the effect of the cut on investors’ behaviour at a time where traditional investment and savings products will be delivering yields at an all-time low. The report found that investors were looking to new asset classes as a result of the fall in interest rates, with 30% considering investment through EIS in the coming 12 months.

Investor Index 2017 

From Britain’s decision to leave the EU to interest rates falling to historic lows, 2016 proved to be one of the most momentous years in Britain’s modern history. To reveal how investors were adapting to the landmark political and economic events, IW Capital surveyed 1,000 UK investors about their investment strategies. The report found that 44% of investors believe Brexit will have a positive impact on their investment strategy.

UK Investor Risk Profile 

To understand how the UK’s body of private investors is approaching their financial strategy at the beginning of the 2017/18 tax year, IW Capital recently launched the 2017 Investor Risk Profile. The research revealed that 2.21 million investors are entering the coming financial year with a greater risk appetite and are seeking new investment classes.

Over the coming months, IW Capital will continue to release industry-leading insight to ensure its investor network is able to make informed investment decisions. To explore our full suite of reports, register as a member of Access 42.