New research from GraniteShares found IFAs and wealth managers are increasingly positive on the UK stock market.
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Will Rhind, Founder and CEO at GraniteShares
- 85% believe the FTSE 100 will close higher this year than in 2023 and almost all say clients will increase trading in UK shares in the year ahead
- Nearly half say that 25% to 50% of the stocks their clients have bought in the past 12 months are listed in the UK
Around 85% predict the FTSE 100 will close higher this year compared with last year while almost all (96%) believe clients will increase their trading in UK shares in the year ahead.
The FTSE-100 gained just 3.8% last year – its best performance for three years – but was still one of the worst performers among major global markets. Currently the market is around 7% higher and the study with 100 wealth managers and IFAs shows they expect the market to perform strongly for the rest of the year.
They believe clients will increasingly trade UK stocks in the next 12 months with 67% saying clients will dramatically increase their level of trading and 29% saying they will slightly increase their level of trading.
Around 66% believe clients will dramatically increase trading in European shares and 28% believe they will slightly increase trading. When it comes to US stocks just 23% expect a dramatic increase in levels of trading while 58% predict a slight increase. Only 12% expect a dramatic increase in trading of Asian stocks and 65% a slight increase.
The study identified the geographical breakdown of the stocks their clients have bought over the past 12 months. Nearly half (46%) say that between 25% and 50% of the stocks their clients have purchased are listed in the UK, with 39% saying UK stocks account for between 50% and 75% of the investments they have made over the last year.
The table below shows the geographical breakdown of the stocks wealth managers and IFAs have bought on behalf of their clients over the past 12 months
| Where the stock is listed | Up to 25% of the stocks bought over the past 12 months | 25% – 50% of the stocks bought over the past 12 months | 50% – 75% of the stocks bought over the past 12 months | 75% – 100% of the stocks bought over the past 12 months |
| UK stocks | 15% | 46% | 39% | 0% |
| European stocks | 28% | 24% | 48% | 0% |
| US stocks | 32% | 51% | 15% | 2% |
| Asian stocks | 35% | 42% | 21% | 2% |
Will Rhind, Founder and CEO of GraniteShares, said: “Clients of wealth managers and IFAs views on the performance of the UK stock market are supported by leading investment banks who are saying buy British based on the recent underperformance of the UK market.
“There is inevitably a bias among UK investors to buy their own stock market, as that is what they understand best, but in this case UK clients would seem to be supported by the view of many analysts. In line with this, we’re seeing a growing demand for our long and short ETPs on UK stocks.”
Source: ETFWorld.co.uk
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