Nearly half of UK investors are positive about Brexit, although two fifths are fearful of Trump and 73 per cent lack faith in Prime Minister Theresa May, according to research carried out by IW Capital.
A survey of 1,000 UK investors, aimed assessing the true impact of 2016’s triple threat of political shocks and their direct effect on the UK investor community, found that one in 10 investors feel the political events of 2016 will influence their investment decision this year more than any other factor.
In addition, 36 per cent of investors think record-low interest rates will negatively impact their 2017 investment strategy, with 26 per cent saying this issue is the single biggest risk to their investments, while 44 per cent of investors – nearly 11 million people across the UK – believe that Brexit will have a positive impact on their investment strategy in 2017.
However, 44 per cent of investors are worried about the impact of Donald Trump’s Presidency on their investments and just 27 per cent have faith in Theresa May’s capability to promote investment value as part of a post-Brexit government.
Some 3.19 million investors are re-evaluating their investment plans in light of interest rates residing at 0.25 per cent, while 27 per cent – 6.62 million investors – believe entrepreneurs will play a critical role in driving private sector growth.
Luke Davis (pictured), CEO of IW Capital, says: “In 2016, the UK experienced a number of historic political events, the true impact of which is now beginning to emerge more clearly in the investment arena. In a year of firsts, where sizeable political shifts made a notable impression across many financial markets, investor sentiment within the private sector has remained resilient.
“It’s interesting to note investors’ plans in light of the slump in interest rates and leadership discontent; transition brings opportunity, and this is reflected in today’s research. With investors looking to new investment classes as we enter into 2017, there is clearly a huge amount of confidence towards the country’s entrepreneurial capabilities, its resolute private companies and the potential of our innovative high-growth businesses to drive economic growth in 2017.”