A third of UK investors have seen the value of their portfolios decrease since March 2020, according to research.
A survey of 1,479 UK-based investors showed 33 per cent saw the value of their portfolio decrease between March 2020 and September 2021.
A further 29 per cent “significantly altered” their investment strategies in response to Covid-19, rising to 56 per cent among investors with portfolios valued at more than £1m.
Of those questioned, 47 per cent changed their investment plans due to the UK’s low interest rates.
The survey questioned investors between August 30 and September 4 with an investment portfolio in excess of £20,000 including their property, savings and pensions. It was conducted for mortgage provider Butterfield by Opinium.
Alpa Bhakta, chief executive of Butterfield’s UK-based mortgage operations, said navigating the turbulent economic landscape during the pandemic has been a challenge for investors.
She added: “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.”
Despite this, when asked about the future 44 per cent saying their were “optimistic” their portfolios will perform well over the next year. This is in comparison to 20 per cent who are not confident that their portfolios will increase in value over the same period.
41 per cent cited the economic fallout from the pandemic as their main investment concern.
sally.hickey@ft.com
