HNW investors are growing increasingly comfortable with the prospect of Brexit according to a report by Rathbones. Mert Acikgoz reports
‘Investors have been aware of the spectre of Brexit now for close to two years and have therefore have had the chance to make plans to make sure that their finances aren’t badly affected,’ says Robert Szechenyi, investment director at Rathbones, one of the largest wealth management firms in the UK.
A recent survey of 1000 UK savers and 500 HNW individuals by Rathbones Investment Management, which manages an AuM of over £38 billion for individuals and trustees, shows that HNW investors do feel more comfortable with the prospect of Brexit compared to last year.
36 per cent of the HNW participants said they feel more optimistic about the possible impact of Brexit on their finances compared to how they felt last year. Moreover, only 23 per cent considered UK’s exit from the EU a major threat to savings, a lower number than last year’s 30 per cent.
Similar to last year, HNW investors considered economic uncertainty, low interest rates and inflation to be a bigger concern for investment. The survey report concurs with Szechenyi’s comment on it, saying that it is possible that change in responses is a result of preparation for Brexit.
The results show a different reality for regular savers. The report says that ‘they feel more concerned about how Brexit will impact their finances than they did last year.’ Only 17 per cent of regular participants are more confident than last year while 20 per cent consider Brexit a threat to their savings. The report says that it is logical for the wealthier to feel more prepared for an effect on the market, especially considering that many HNWs have financial advisers that help reduce their risk exposure.
‘For investors that have not yet put plans in place to protect their portfolio, it’s important that they start thinking about doing so now,’ Szechenyi continues. He recommends ‘simple measures such as making sure that their portfolio is diversified across both asset classes and markets’ to lower the risk from uncertainty.
For concerns about high inflation and low interest, he has more complicated suggestions: ‘People who hold a large proportion of their money in cash could move some of this into a different asset such as a stocks and shares ISA or Self Invested Personal Pension (SIPP)’.
Mert Acikgoz writes for Spear’s