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
This quarter (Q3) saw a growing number of investors anticipating that Brexit would have a major impact on their business operating model, with 25.7% of respondents believing its impact would be “significant”. This is the highest score since the index began, although the overall proportion of investors anticipating any impact (83.2%) is lower than the record high score of 87.3% set in Q1 2018.
Appetite for increased holdings of UK assets rose to the highest level since the index began, at 20.8%. The previous high of 15.5% was set in Q3 2017. However, the proportion of investors looking to decrease their holdings of UK assets also rose, from 13.9% in Q2 to 19.8% in Q3. This is more in line with the historic average, with Q2’s score notably lower than in previous quarters.
Brexometer Q3 2018 was carried out in conjunction with PollRight*, and captures the views of 101 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. As Citigate Dewe Rogerson’s in-house research department, it has been at the forefront of research-led PR for over 20 years, encompassing bespoke business omnibus surveying, desk research and analysis and data visualisation. ** Regions covered by survey included UK, US, Europe, Central & South America, Middle East, Asia, Africa and Oceania.