Inflation, the UK’s slow economic recovery and geopolitical conflict are seen as the most significant risks to the performance of UK investors’ portfolios, research from Raw Capital Partners has found.
The Guernsey-based investment management firm commissioned an independent survey of 756 UK-based investors, giving them a list of different factors or events and asking which they perceived to be the highest risk.
Inflation ranked top, with 89% of respondents saying this presents a ‘high risk’ or ‘moderate risk’. This was followed closely by a slow economic recovery in the UK (88%) and geopolitical conflicts (87%).
Lower on the list, 82% see high interest rates as a risk to their investors, while the US presidential election (81%) and climate change (79%) are also considered to pose notable risks to UK investors’ portfolios.
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Ben Nichols, interim managing director at Raw Capital Partners, said: “Globally, economies have been struggling with the impact of high inflation for some time, and the action that central banks like the Bank of England have taken to bring it down has made it extremely difficult for any meaningful economic growth. This has taken its toll on investors, with inflation remaining a major risk in their eyes, while a slower-than-hoped economic recovery in the UK is evidently another concern.
“Perhaps more surprising is how highly many of the risk factors scored. Most analysts and economists now suggest that the global economy has turned a corner, but our research suggests there remains a broad and pervasive anxiety among investors towards the current and future state of the investment landscape,” he added.
Nichols advised investors to recommit to strong risk management strategies to safeguard against potential volatility. This involves creating balanced and diversified portfolios that can endure economic uncertainties, helping investors stay aligned with their long-term goals.
