UK investors among the most optimistic in Europe
UK investors are among the most optimistic in Europe regarding the outlook for their investments, despite fears over events such as Brexit and the impact of record low interest rates, Legg Mason Global Asset Management has found.
A survey by the asset manager found half (50%) of UK investors are “somewhat optimistic” about the returns their investments could achieve over the next 12 months, while a further 13% are “very optimistic”. Only 30% say they are “not that optimistic”, with just 8% not optimistic at all.
The findings are part of Legg Mason’s fifth annual Global Investment Survey, which polled over 15,000 people around the world. The results mean UK investors are some of the most positive in Europe when it comes to the outlook for their portfolios.
Only Swedish investors are more positive overall, with 62% saying they were “somewhat optimistic” and 6% “very optimistic”.
On average, 49% of European investors were “somewhat optimistic” about the outlook for returns, with a further 7% “very optimistic”.
The upbeat view from UK investors comes despite concerns over Brexit, with 46% highlighting the outcome of negotiations to leave the EU as an issue which could impact the performance of their investments.
Only ongoing concerns over low interest rates topped Brexit, with 52% citing this as a worry.
Justin Eede, Head of Europe and Americas Distribution at Legg Mason, says that while the optimism in the UK might surprise given the Brexit backdrop, there are many reasons to be positive.
“While there has been an understandable focus on the impact of Brexit, the truly global nature of investment markets – particularly the FTSE 100 – means investors can continue to make returns irrespective of the domestic outlook,” he says.
“As such, it is perhaps unsurprising that such a positive attitude has prevailed into 2017, especially following the gains seen the previous year across some asset classes.”
Looking across the globe, US and Chinese investors are the most positive globally when it comes to the outlook for returns. Almost half (46%) of US investors say they are “somewhat optimistic” and a further 34% “very optimistic” while in China the figures are 63% and 17% respectively.
The least optimistic investors globally are in Japan, with 48% of respondents saying they are not that optimistic, and a further 12% not at all optimistic.