Investment managers are increasingly looking at the UK’s stock market as a way to invest in the country’s economic recovery, according to a survey.
The results of a survey by investment consultancy, Wealthfront, showed that over the past year, investors from the US, Europe and China have increasingly started to invest into the UK stock market.
They are hoping that Brexit will help boost the economy, with a stronger pound and lower inflation, according the survey, which was carried out by Wealthfront.
It is not the first time that investors are looking to the UK to boost their wealth.
More than 1,000 investors from all over the world responded to the survey.
The most popular option was to invest from an asset that is backed by an existing British investment, like an existing business or a home, and has a positive growth rate.
“The UK stockmarket is a safe haven investment for those investors who need to be able to invest safely in the coming years,” said Wealthfront CEO, John D. Kettner.
In the survey of more than 100 investment managers, investors said that Brexit would be a major catalyst for the UK market.
“If Britain leaves the European Union and its economy struggles in the short term, investors would be wise to consider investing in the stock market,” said Rich Hahn, chief investment officer at Investment Manager Ltd, a UK-based investment advisory firm.
This survey also found that a large majority of investors, 76%, were interested in investing in UK-listed companies, while just 5% were interested only in British companies.
According to the report, over 90% of the respondents have either a local business or home and said that investing in British businesses and homes would help their businesses grow.
For the top five investment picks, WealthfulInvestors.com identified the three UK-registered companies that offer the best return.
The company is Capital One, with returns of 2.8% a year.
Banks in the US and Europe, with higher returns than the UK, include Bank of America Merrill Lynch, 2.6%, HSBC and Royal Bank of Scotland.
Another UK-linked company is UK-owned insurance company, The Insurance Corporation of Ireland (ICI).
It returns 2.9%.
The company offers a range of investment services including investment-grade corporate bonds, fixed income, corporate bond funds and fixed income investments.