Private Client Investors Yawn At Election Dramas, Equity Appetite Rises

Editorial Staff

12 July 2024

For all the sound and fury of the political hustings around the world, it appears that UK private clients are increasing their equity risk appetite.

According to a wealth manager sentiment survey from , net sentiment towards equities has risen to 57 per cent from -22 per cent over the past 12 months.

With the third quarter underway, 63 per cent of the 90 chief investment officers of wealth management firms that took part in its latest survey expressed a positive view on equities compared with just 13 per cent this time last year, ARC said.

“The near-term impact of a new government on the UK equity market is likely to be fairly limited as we are told that only 17 per cent of MSCI UK revenues are actually generated in the UK,” Grant Wilson, CIO at investment consultancy ARC, said. “In the medium to long term, reforms could create a more favourable business environment and support sectors with a high domestic exposure. However, the longer-term outlook is more uncertain, with the US election likely to have a far greater impact on the global economy, which could influence bond yields and potentially lead to higher interest rates in 2025.”

There are more than 70 elections that have taken place or are to be held this year. The UK has just had its general election, France has gone through the process and many eyes are fixed on the November drama in the US. Other major elections that have taken place include those in Mexico, India, and Taiwan.

This publication interviewed Paul Fearney, managing director of ARC, back in October 2022 about the role this organisation plays in shedding light on the private client portfolio space. Fearney was most recently private banking head at Kleinwort Hambros.