- SyndicateRoom research shows that, despite more than half having voted Remain, more than a quarter of UK investors are more determined to invest after the Leave result
- Young investors remain undeterred ahead of Brexit, with more than half more inclined to increase their investments following the result of the EU Referendum
- Despite continued uncertainty, young investors will be continuing to invest more in 2017, and looking to take on a more diverse portfolio
- Young investors remain confident in performance of UK businesses – on average, 70% of additional retail investment forecast for 2017 will be committed to UK companies
11 January 2017, Cambridge, UK – Online investment platform SyndicateRoom has released a study revealing that the UK’s young investors, despite more than half voting to Remain, are more committed than ever to invest in Britain’s economic future as the nation gears up to leave the European Union.
SyndicateRoom’s study analysed sentiment and expectations of more than 1,000 retail investors in response to the result of the EU Referendum in June. It reveals that, despite Brexit spelling continued uncertainty and potential volatility, younger investors expect to invest more in the 12 months ahead and the majority of these funds look set to be allocated to UK investments. The results show:
Investors are more inclined to commit funds irrespective of Brexit, expecting to invest further in 2017. Despite more than half (54%) voting to Remain, more than a quarter (28%) of the UK’s retail investors say they are now more likely to invest following the June referendum vote, compared to 17% of investors who are now less likely to do so.
Younger investors are optimistic and the driving force backing Brexit Britain. Of those investors more likely to deploy funds in the next year, the 18–30 age group is more than three times as likely to invest as its older counterparts. Whilst 71% voted to stay in the EU, more than half (53%) of investors aged 18–30 are more determined to invest following the result – that’s more than triple those investors aged 51+, of which only 15% are more inclined.
Equity markets offer the most appealing asset class for investment post Brexit vote. Following the vote to leave, UK investors still find equities the most attractive asset class for further investment, ahead of bonds, commodities and other less liquid assets. 56% of investors opted for equities as the best bet, more than double the amount of investors siding with bonds (22%). This is again true for younger investors, with more than half (52%) of those aged 18–30 putting equities top of their list.
Investors remain confident in backing UK business. Not only are investors expecting to deploy more funds following the Brexit vote, but they are now more determined than ever to invest in UK assets. Of the additional capital investors plan to commit in 2017, an overwhelming 70% is expected to be in Britain.
‘The UK has a lot of to be proud of. Market-leading technology coupled with a fast-evolving investor environment and first-class talent makes Britain the most attractive centre in the world for bringing technology and fintech companies to market. This remains the case, irrespective of Brexit,’ said Gonçalo de Vasconcelos, CEO and co-founder of SyndicateRoom. ‘The continued confidence we’re seeing from our next generation of investors is a glowing endorsement of these strengths. It’s clear that tomorrow’s investors are the future of Brexit Britain. With retail investment set to grow more than ever, we need to ensure that this demand is channelled effectively to support UK businesses, allowing them to flourish and maintain the vital stimulus needed for a vibrant economy in the long term.’
Methodology and sample group
In carrying out the research, SyndicateRoom surveyed over 1,000 UK retail investors, finding that individual investors allocate around 25% of their wealth to investments. Around 3% of investors surveyed allocated more than 90% of their wealth to investments.
Of those surveyed, about one-fifth hold their entire portfolio in late-stage equities, but only 2% hold their portfolio in early-stage equities. Meanwhile, a large proportion of UK investors hold a very small amount (1–9% of their portfolio) in early-stage firms.
For further information, please contact:
Katie de Cozar Rushforth
+ 44 (0) 7557 307 769
Rob Mindell / Darius Alexander / Kuldeep Mehmi
+ 44 (0) 20 3727 1000
SyndicateRoom is an online investment platform, encouraging transparency, fairness and access for all. By allowing members to co-invest alongside experienced investors in highly sophisticated opportunities, they get access to the same economic terms as the lead investors. This applies to opportunities across the entire funding journey, from early stage private companies to premium segment listings on the main market of the London Stock Exchange.
Lead investors and advisers include UK Business Angel of the Year Peter Cowley and super-angel Jonathan Milner.
SyndicateRoom is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.