87% of investors polled in the State Street Brexometer survey predicted Brexit would impact their model
The number of investors who believe Brexit will impact their operating model has reached an all-time high, but so too has global economic optimism, a survey has found.
The latest State Street Brexometer, “Gauging investor sentiment on the Brexit impact”, conducted in January 2018, found that almost nine out of ten (87%) investors polled predicted Britain’s departure from the European Union would impact their model.
The proportion rose 5% from the last quarter of 2017, when it was eight out of ten. Perceptions about the severity of its impact appear to have fallen, as the proportion of investors believing Brexit would have a “significant” impact on their operating model, shifted down from 22% to 15%.
Optimism was also noted in the medium-term outlook regarding global economic growth, which reached an all-time high with 55% saying their outlook was positive, up from 40% in the last quarter of 2017. At the same time, the proportion of respondents with a negative outlook fell from one in five at the end of 2017 to close to one in ten (12%) in January.
The main areas where respondents felt businesses would need most support as a result of Brexit were in the area of regulatory reporting (37%), fund restructuring, currency overlay strategies and transition management.
Meanwhile, more and more investors believed asset owners would increase the level of investment risk slightly.