19th February 2018
Asked about their investment plans over the coming 12 months, over half of respondents, 53%, said they would rather invest in traditional assets such as bricks and mortar over newer asset classes such as cryptocurrencies. Moreover, 63% said they regard property to be a safe and secure investment in the current market, with 18% considering investing in one or more properties over the course of the next 12 months.
To measure how investor sentiment towards the Conservative Party has changed, MFS asked investors whether they are now more or less confident in the strength and unity of the Conservative Party than they were at the beginning of 2017. As a result of the snap General Election, cabinet reshuffle and Brexit negotiations, the survey found that 58% of investors are less confident in the strength and unity of the UK Government than they were at the beginning of 2017.
Despite this, investors are overwhelmingly optimistic about the country’s future and have not let Brexit undermine their long term investment strategy. The MFS research shows that 77% of investors think Britain leaving the European Union (EU) is unlikely to affect their long term investment strategy and, as a result, they have not changed the way they have been investing since the EU referendum was held in June 2016. Some 23% of respondent also believe their investment decisions in 2018 are more likely to take account of international politics than UK-based events.
Paresh Raja, chief executive officer of MFS, commented on the findings: ‘While confidence towards the Government has clearly been shaken by the shock General Election result, multiple Cabinet reshuffles and slow pace of Brexit negotiations in 2017, this research shows that investors still have a positive long term view for the year ahead. Interestingly, despite the hype surrounding new asset classes such as cryptocurrencies, the majority of investors are still placing traditional investments, such as property, at the top of their list in 2018′.