The withdrawal of the UK from the European Union, referred to as Brexit, and slow economic growth are among the top concerns of wealth managers, according to the Jupiter Wealth Manager Index survey.
About 70% of the wealth managers cited Brexit as a cause of worry, while over 50% were concerned about a sluggish global growth and geopolitical uncertainty.
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"There are strong concerns among wealth managers that a vote to break away from the EU would result in foreign investors questioning their exposure to the UK economy and UK assets; this in turn could lead to an increase in bank funding costs which could be passed to UK consumers through tightening credit conditions," the study said.
Overall, the study found weak positive sentiment among UK wealth managers, with a score of 2 on a scale ranging from -20 to +20.
In terms of individual sectors, wealth managers held the view that the consumer goods and services sectors would exhibit good performance. The healthcare sector too was regarded as a safe investment option owing to its classic defensive qualities.
Wealth managers were broadly dispersed in their outlook of the oil and gas and financials sectors. The slump in oil prices was cited as one of the main reasons of dividend concern among wealth managers.
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By GlobalDataHowever, wealth managers opined that the UK still has a lot of advantages, such as strong services sector, wage growth and low unemployment, citing that "adaptability is likely to be the key to investing this year in a cycle favouring stock-pickers."
