Third of UK investors see Covid wipe value off of their investments

News Team, 18/10/2021

A new survey of 1,479 UK-based investors has revealed how they have responded to the financial disruption caused by the pandemic, as well as their outlook for the year ahead.

It found 33 percent of UK investors have seen the value of their portfolios decrease since March 2020, 29 percent “significantly altered” their investment strategies in response to Covid-19.

Even more (47 percent) changed their investment plans due to the UK’s record low interest rates. However, the tide might be turning – 44 percent of investors are optimistic their portfolios will perform well over the coming 12 months, compared with 20 percent who are pessimistic.

One in three UK investors has seen the value of their portfolio fall during the pandemic, but optimism is returning, new research by Butterfield’s UK operations has found.

The mortgage lender commissioned an independent survey of 1,479 UK-based investors, all of whom have investments worth in excess of £20,000, excluding their property, savings, and pensions. It found that 33 percent of investors saw the value of their portfolios decrease between March 2020 and September 2021.

Alpa Bhakta, CEO of Butterfield’s UK-based mortgage operations, said: “Navigating the turbulent economic landscape during the pandemic has been a challenge for investors. The option for many has been to pause on making major investment decisions, or to adopt a more risk-averse financial strategy. Clearly, however, it has not stopped a significant number of investors from being hit financially by Covid-19.

“It is positive to note that the number of optimistic investors more than doubles those lacking confidence. With interest rates remaining at record lows and the UK government’s economic policies evolving all the time, it will be interesting to see how investors now adapt their strategies in the months to come and which assets or markets attract the most attention.”

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