The number of investors planning to increase their UK assets has grown over recent months, albeit slightly.
A poll shows a “modest” increase in appetite for UK investments, with 16% of the 103 institutional investors globally anticipating they will have greater UK exposure in the next six months.
The finding, which is from the State Street Brexometer Index, reflects a 3% increase in UK investment appetite since the first quarter of the year.
However, the share of investors suggesting they would reduce their holdings also rose by 2% to 20% of those surveyed.
“Importantly, the balance is still positive,” said Michael Metcalfe, head of global macro strategy at State Street Global Markets. “More investors still plan to increase their holdings of UK assets, there is still no evidence of capital flight from UK assets.
“But it is testimony to the continued level of uncertainty over Brexit that the opinion amongst these respondents is getting more divided not less as the deadline nears.”
The findings also pointed towards a gradual rise in confidence for the global economy, with 45% of respondents expecting positive growth in the next three to five years. This is a 13% increase since the survey in the fourth quarter (Q4) of 2016.
Just over a third of respondents said they expected asset owners to increase their level of investment risk over the next three to five years, a 7% rise since Q4 2016.
The number of investors who felt Brexit would impact their businesses is still high, but was down by 7% to 72% since the last quarterly survey.
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