Investments  

Third of UK investors considering alternative assets

Third of UK investors considering alternative assets
 

A third of UK retail investors are looking beyond traditional investment assets as a result of concerns over the government’s economic policy.

Some 30 per cent of UK adults are looking at alternative assets as a result of the risk of recession, with 33 per cent saying they are doing so out of concern over the government’s tackling of the issue, according to research by real estate investment platform Shojin.

Among investors aged 18-34, that figure rises to 59 per cent. 

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When asked about the perceived resilience of alternative asset classes, 29 per cent of investors said they believe the assets are less likely to be impacted by political and economic disruptions.

However, 60 per cent of those surveyed found it challenging to work out the best way to gain access to the assets.

Alternative asset classes are any that are not traditional stock, bond or cash holdings, such as real estate, infrastructure and private equity.

When asked about the resilience of alternative assets in the economic climate, 29 per cent of investors believe alternative assets are less likely to feel the impact of political and economic disruptions.

Despite the appeal of alternative investments among many investors, Shojin’s study revealed there is a major barrier.

Over half (60 per cent) find it challenging to determine the best way to gain access to alternative asset classes.

Market research agency Opinium surveyed 2,000 UK adults between November 17 and 22 on behalf of Shojin.

Chief executive of Shojin, Jatin Ondhia, said although alternative investment strategies have been steadily gaining traction in recent years, this research shows a renewed emphasis on diversification strategies.

“However, the research also revealed there is a significant knowledge gap among investors, which is impacting their exposure to alternative asset classes. 

“As ever, investors will need to conduct thorough due diligence, consider their risk appetite, weigh up their strategies and choose investment partners carefully to ensure their portfolio aligns with their investment goals, particularly in the current climate”.

sally.hickey@ft.com