UK investors are dissatisfied with how their investments have performed over the past year.
A survey of UK-based investors confirmed high inflation and geopolitical conflicts were seen as major challenges.
RAW Capital Partners spoke to more than 750 people with investments of more than £25,000, excluding their property, savings or pensions.
It found just 47 per cent of investors were pleased with how their investments have performed over the past 12 months.
Ben Nichols, interim managing director at the firm, said: “Our research clearly illustrates the impact that recent economic and geopolitical turbulence has had on investors in the UK.
"Many are struggling to adapt to political uncertainty and macroeconomic trends like high inflation and interest rates – the result is that less than half are happy with how their investments have performed in the past year."
Overall, 45 per cent of respondents said high inflation has made it more challenging to manage their investments, while 32 per cent said rising interest rates have negatively impacted their portfolio performance over the past two years.
The survey also found 57 per cent of investors believe the global political and economic landscape in 2024 has been more turbulent than at any other time in the past decade.
This has influencing investment decisions, with 38 per cent saying geopolitical conflicts and instability have affected their strategies over the past year.
Nichols added: "With UK and US elections approaching, and it being unclear how the UK economy will perform in the second half of the year, there could be more challenges to navigate. So, it is positive to note that two fifths of investors are turning to diversification as a priority.
“We are by no means out of the woods when it comes to geopolitical conflict and economic headwinds, so it is important that investors continue to protect their portfolios against market volatility by assessing which asset classes and investment tactics can best enable them to achieve their long-term financial goals.
"Drawing on the benefits that diversification in non-correlated asset classes can provide will continue to reap rewards."
The outlook for UK investors was also not optimistic with just 40 per cent of the investors asked saying they were confident their investments will perform well in the next 12 months.
tara.o'connor@ft.com
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