Brexit is the biggest concern for advisers’ UK clients.
So concludes the Schroders’ annual Adviser Survey which was completed by over 400 financial advisers from across the UK.
It revealed that 90% of advisers said that the impact of Brexit was a concern for their clients for the next 12 months.
This was up from 81% in 2017 and 71% in 2016. In contrast, only 20% of advisers said that rising interest rates were a concern for their clients.
Many advisers are also worried about the impact of Brexit on their businesses, with 63% stating it will have a negative impact, up from 56% in 2017.
Philip Middleton, Head of UK Intermediary, Schroders said: “Financial advisers have a crucial role to play in helping investors navigate changing market conditions. It comes as no surprise that almost all of the advisers who took part in our annual Adviser Survey have discussed the potential implications of Brexit with their clients.”
The survey also indicated that 70% of UK advisers’ clients are prepared to take less risk due to their Brexit concerns, with 23% increasing their allocation to cash.
And 13% of advisers’ clients have moved money out of UK assets in 2018 and a further 22% are currently considering doing so. 74% of those who have reallocated from UK assets in 2018 have invested in US assets, up from 22% in 2017. The percentage of people reallocating assets to Asia ex Japan and emerging markets has also risen sharply, with reallocation to Europe broadly flat.
Middleton added: “It’s likely that Brexit concerns are playing a part in asset allocation decisions with some movement out of UK equities in the last 12 months. However, while there has been an increase in allocation to cash, which suggests that some clients have been looking to take risk off the table at a time of increased uncertainty, the greatest pick-up in allocation has been to equity opportunities beyond the domestic market.”