3rd December 2019

UK investors rally to traditional assets, new research reveals

Butterfield Mortgages Limited (BML) has commissioned an independent survey of more than 1,100 UK-based investors (all with investments in excess of £10,000) to find out what asset classes currently make up their financial portfolios and what factors are influencing their investment strategies in 2020.

Key data highlights:
• The most common assets investors hold are stocks and shares (53 per cent), property (41 per cent) and bonds (30 per cent)
• 20 per cent of investors said they plan to increase the amount of money they have invested in real estate in 2020
• 61 per cent of investors believe traditional assets like property are best positioned to deliver stable and secure returns during the current political uncertainty
• Art and forex (both 19 per cent), cryptocurrencies (17 per cent) and classic cars (16 per cent) were the least common investments
• 10 per cent of those who have invested in cryptocurrency plan to reduce their amount of investment in this asset in the new year
• 64 per cent of investors do not think cryptocurrencies are a safe or reliable investment
• 43 per cent have become more socially and environmentally conscious in their financial strategies

The research found that Brexit is also playing on investors’ minds: 42 per cent are holding off making any major investment decisions until Brexit has been resolved, though 49 per cent are confident in the long-term performance of UK-based assets. This compares with 23 per cent of investors who are looking to assets based outside the UK for their investments in 2020 because of Brexit.

Alpa Bhakta, CEO of BML, said: “In this era of political uncertainty, investors are rallying towards traditional asset classes like property, which are historically resilient and able to hold their value in times of transition. The fact a significant proportion of investors are planning to increase investment into property in 2020 shows that despite Brexit, demand for real estate remains resoundingly strong.

“Interestingly, the factors influencing financial strategies are also changing–on top of security and stability, investors are also taking into account the environmental and social impact of their investments. This will evidently be an important trend over the coming years, and is something both financial services firms and advisers will need to pay attention to in 2020.”