UK-based private equity firm, IW Capital, announced on Thursday the release of its 2017 investor index. This new report reveals the impact of 2016’s biggest events, which consists of Brexit, Donald Trump’s U.S. Presidential win, and Theresa May.
According to IW Capital, the new research was done among 1,000 UK investors, who have between £10,000 and over £250,000 worth of investments, which does not include properties or pensions, the firm found that investors believe Brexit will actually have a positive impact on their investment strategies in 2017 but are fearful of both the UK and U.S.’s new political leaders. Full findings are included below.
- 2.21 million investors are entering 2017 with a greater risk appetite, thus seeking new investment classes
- One in ten investors feel the shock political events of 2016 will influence their investment decision this year more than any other factor
- 36% of investors think record-low interest rates will negatively impact their 2017 investment strategy, with 26% saying this issue is the single biggest risk to their investments
- 44% 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% of investors are worried about the impact of Donald Trump’s Presidency on their investments
- Just 27% said they have faith in Theresa May’s capability to promote investment value as part of a post-Brexit government
- 3.19 million investors are re-evaluating their investment plans in light of interest rates residing at 0.25%
- 27% – 6.62 million investors – believe entrepreneurs will play a critical role in driving private sector growth
Commenting on the report’s findings, Luke Davis, CEO of IW Capital, stated:
“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.”