Research from RAW Capital Partners reveals that inflation, the UK’s slow economic recovery, and geopolitical conflicts are viewed as the top risks to UK investors’ portfolios.
The Guernsey-based investment management firm surveyed 756 UK investors, each with investments exceeding £25,000 (excluding residential property, savings, and pensions), to gauge their perceptions of various risks.
Inflation emerged as the primary concern, with 89% of respondents identifying it as a ‘high risk’ or ‘moderate risk.’ This was closely followed by the UK’s sluggish economic recovery (88%) and geopolitical tensions, such as conflicts in Ukraine and Gaza (87%).
Other concerns include high interest rates (82%), the US presidential election (81%), and climate change (79%), all of which also pose significant risks to UK investors’ portfolios.
Ben Nichols, Interim Managing Director at RAW Capital Partners, commented: “High inflation has been a persistent challenge globally, and efforts by central banks, including the Bank of England, to mitigate it have hindered substantial economic growth. This ongoing issue remains a major concern for investors, along with the UK’s slower-than-expected economic recovery.
“It is noteworthy how high the perceived risk factors scored, despite many analysts suggesting that the global economy is improving. This indicates a widespread and enduring apprehension among investors about both current and future market conditions.
“Investors should focus on implementing strong risk management strategies to shield their investments from potential volatility caused by these risk factors. Building balanced and diversified portfolios can help navigate economic uncertainties and keep investors aligned with their long-term goals.”