State Street Brexometer
The State Street Brexometer Index is our quarterly snapshot that gauges investor sentiment on the impact of Brexit.
Brexometer is a quarterly pulse survey designed to gauge investor sentiment on the economic impact of Brexit. The results cover the expected impact to operating models, levels of investment into the UK economy, prospects for global economic growth and appetite for investment risk.
Here’s what we found
While the appetite for increased holdings of UK assets rose to record levels in Q3, Q4 brought a slightly more muted response from investors, with those intending to increase their holdings falling to 14.6 percent. This is still the second highest score since Q3 2017. The proportion of investors looking to decrease their holdings of UK assets also rose slightly, from 19.8 percent in Q3 to 20.4 percent in Q4.
The positive view for the medium-term global economic outlook remains strong at 38 percent — a slight fall from 43 percent in Q3. However, the number of investors with a negative outlook doubled, from 15 percent to 30 percent. This is the highest negative reading since the index began, and is over 7 percent higher than the previous record (set in Q2 2018 at 23 percent).
Brexometer Q4 2018 was carried out in conjunction with PollRight*, and captures the views of 103 professional investors, comprising institutional and alternative investors, such as hedge funds, real estate and private equity**.
PollRight is a market research agency specialising in business-to-business research. The current research was conducted between 30 October and 8 November 2018. **Regions covered by survey included UK, US, Europe, Central & South America, Middle East, Asia, Africa and Oceania.