Earlier this month at our GAM UK IFA roadshow we polled attendees to gain an insight into their views on whether the UK should remain in Europe. Perhaps not so surprisingly, more than two thirds are against Brexit.
Based on our research 69% of IFAs appear to be in favour of the UK remaining in Europe, while 31% believe the UK would be better off voting ‘out’.
For 34% of respondents, politics is the biggest risk factor for 2016, followed by global economic recession at 22%, the Euro crisis at 16%, and a Chinese debt implosion at 14%. A liquidity crash and the risk of the Federal Reserve lifting rates too quickly were also identified as risks.
Europe is still in favour with IFAs for equity investment, with almost half of respondents (48%) expecting it to deliver the best returns for the remainder of 2016. The US and emerging markets trailed with a 16% equal split of votes, while Japan and the UK stood at 15% and 6% respectively.
Charles Hepworth, investment director at GAM responsible for developing and managing outsourcing solutions for UK IFAs, said: “Given the uncertainty around the ‘in-out‘ referendum and the potential for Brexit, we have a relatively cautious outlook on UK equities and are currently positioned moderately underweight. Sterling is likely to come under renewed pressure as investors are worried about the UK’s economic prospects.
“Europe remains the most favoured investment region for IFAs and we believe that many of the structural imbalances in the eurozone have now been corrected. One of the managers we hold in this space sees the best investment opportunities in Spain and Ireland, where the level of domestic demand has corrected to such a degree that a multi-year bounce in internal demand is inevitable.”
Our annual GAM UK IFA roadshow hosted more than 100 IFAs in Newmarket, Birmingham, Chepstow and London during March. If you would like to find out more about the GAM roadshows, do get in touch or visit our dedicated page.
This post was published by GAM on the DISCUS website. You can find out more about their investment services here ›