New data released by ComPeer, the specialist in business performance benchmarking, competitor analysis and research services for wealth managers, private banks and stockbrokers, paints a mixed picture of international mass affluent and High Net Worth (HNW) sentiment in the UK economy following the Brexit referendum result.
35% of those surveyed indicated that they would be less likely to invest in the UK as a result of the Brexit vote. The most negative sentiment was found among German investors, where that percentage rose to 50.
The reverse picture was the case in the US where, potentially due to the weakening of the pound against the dollar, 45% said they were more likely to invest in the UK following the decision. In line with this, the US respondents were also the most positive about increased returns following the vote, with 53% expressing this opinion. By contrast, 29% of UK investors expect reductions in their future returns.
The majority of investors across all countries surveyed expect the UK economy to grow following the vote for Brexit, although most believe that it will do so at a slower rate than in recent years. Again, the relative moods of Germany and the US were apparent: 32% of German investors expect the UK economy to shrink, whereas 43% of US investors expect the economy to grow faster than in recent years.
James Brown at ComPeer said: “The contrasting views of Brexit, particularly from the USA and Germany, show the importance of the UK avoiding a one size fits all approach.”
Overall, the UK investors surveyed voted to remain – a preference that was echoed by investors from Germany, France, the US and Singapore. Switzerland was the one exception with 47% saying they would have voted to leave (44% would have voted to remain and 9% would not have voted).
ComPeer, in association with its research partner, IRESS, surveyed 1,000 HNWs across the UK (500), Switzerland (100), France (100), Germany (100), Singapore (100) and the US (100) in November via an online questionnaire.