Wealth managers’ sentiment towards the UK shows an increase in optimism as 85% believe the FTSE 100 will close higher this year than last, according to GraniteShares’ survey of 100 wealth managers.
While the FTSE 100 returned just 3.8% in 2023, the market is currently 7% above where it started the year, and wealth managers expect the trend to continue. Across the past five years, the FTSE 100 has teetered up 11.6%, while its US counterpart, the S&P 500, has shot up 93.6%.
But wealth managers are witnessing interest in the UK market: nearly half report that between 25% and 50% of the investments clients this past year were listed in the UK. Another 39% of wealth managers cite UK stocks making up between 50% to 75%.
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The trend, in the eyes of wealth managers, will continue. Of those surveyed, 67% believe there will be a “dramatic increase” in the level of trading for UK stocks, and 29% anticipate a slight increase. In comparison, just under a quarter expected a dramatic increase for the US market.
Will Rhind, founder and CEO of GraniteShares, said: “Clients of wealth managers and IFAs views on the performance of the UK stockmarket are supported by leading investment banks who are saying buy British based on the recent underperformance of the UK market.
“There is inevitably a bias among UK investors to buy their own stockmarket, as that is what they understand best, but in this case UK clients would seem to be supported by the view of many analysts. In line with this, we’re seeing a growing demand for our long and short ETPs on UK stocks.”
GraniteShares conducted an online survey in August, via PureProfile, of 100 wealth managers and IFAs to gather its data for the report.
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