UK retail investors remain focused on UK equities despite Brexit uncertainty, new research indicates.
According to a survey from investment company Willis Owen, 57 per cent of investors said they will have invested in UK equities this tax year, and 46 per cent said they will have invested in UK fixed income products.
European equities came in third place, attracting investment from around a fifth of Isa savers.
Brexit was the reason behind a reduction in UK stock investment in only a quarter of UK Isa investors, with just over half saying it had had no impact.
Exactly half of the investors polled said Brexit has made UK equities look cheap at the moment, compared with 11 per cent who think they currently look unattractive on a five-year view.
Willis Owen head of personal investments Adrian Lowcock says: “There is no doubt that Brexit has had a negative impact on the UK stock market, but this means that many stocks are now undervalued and represent a very attractive proposition for investors with a longer term view.
“However, there may also be short-term volatility with UK equities. If Brexit is delayed or even abandoned, the UK stock market could see a significant rise. And if there is a bad Brexit, there could be a fall in the value of the pound that could benefit many FTSE 100 companies which are predominately internationally focused and whose earnings are in US Dollars.”