Investment - Articles - UK will vote to stay in the EU - results from RLAM poll


Royal London Asset Management (RLAM), one of the UK’s leading fund management companies, asked an audience of 89 wealth managers, institutional clients and financial advisers at its annual investment conference last week to predict the outcome of the EU referendum.

 Just 11% believed that the UK would vote to leave the European Union on the 23rd June, with the majority (89%) predicting a vote to stay.

 The session also looked at the audience’s outlook for financial markets until the end of 2016 and beyond. Chinese destabilisation was seen as the biggest threat to investors in 2016 by more than a third (34%) of respondents; a further 22% cited a Euro crisis. Just 1% believed that the price of oil would be the biggest threat.

 Other key findings from the survey were:

 · 43% of the audience said that equities would be their favoured asset class over the next 12 months. A further 17% favoured cash or absolute return.

 · On the fixed income side, high yield bonds (31%) and investment grade-credit (30%) were highlighted as investment targets for investors in 2016, with a further 20% backing absolute return.

 · High yield bonds were also seen as the best opportunity for income investors right now (30%). Equity income (20%) and multi asset income (18%) were also popular.

 · 21% of advisers thought that alternate asset classes such as peer-to-peer lending (8%), infrastructure (7%) or aircraft leasing (6%) were the best opportunities for income.

 · Investment process was the most important factor for investors selecting an asset manager (38%), above investment performance, which was backed by a quarter of respondents (25%).

 Rob Williams, Head of Distribution at Royal London Asset Management, commented: “Investors are understandably nervous about the upcoming referendum vote, with the prospect of a Brexit potentially leading to heightened volatility in financial markets. With less than two months until the EU referendum, the consensus amongst our audience was aligned with our own house view that Britain would vote to remain in the European Union.”

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