Alternative Investments/Real Estate: As Low Interest Rates Bite, UK Investors Tilt Towards Alternatives

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The survey was commissioned by cloud solutions provider, NexGen Cloud.

An independent survey of 889 UK investors commissioned by NexGen Cloud found that over 40% are likely to consider alternative investments such as real estate, cryptocurrencies and collectibles in the present low-interest rate environment. (Wealth Adviser)

The Bank of England yesterday kept its Base Rate unchanged, having cut it to a record low of 0.1 percent in March 2020. It was bad news for the country’s savers, given a recent uptick in inflation readings.

“Savers, as they have been since the Global Financial Crisis, remain in an almost impossible position. Rates are at rock bottom and inflation is well above target and projected to rise further,” said Simon Lister, an IFA at the financial comparison website, InvestingReviews.co.uk, to the Express.

Survey by NexGen Cloud

Here are the key findings of NexGen Cloud’s survey of investors all of whom have portfolios in excess of GBP10,000, not including any primary property, savings, pensions or SIPPs.

  • 43 per cent are more likely to consider alternative assets to make their money work harder
  • 20 per cent of investors’ current portfolios are weighted more towards alternative investments than traditional assets
  • 23 per cent saying alternative investments will form a key part of their financial strategy in the coming 12 months
  • 17 per cent hold real estate investments at present – real estate is the most common alternative investment among UK investors
  • 19 per cent are considering investment in real estate over the next year
  • Cryptocurrencies and collectibles tied for the second most popular alternative asset – 14 per cent each
  • 8 per cent had invested in cloud computing infrastructure or data mining
  • 18 per cent were considering this sector for investing in the year ahead.

Chris Starkey, founder and director, NexGen Cloud, said: “Over the past 18 months, the financial markets have been subject to intense volatility, which combined with record low interest rates, is evidently leading investors to diversify into new areas beyond mainstream assets.”

“Clearly, some investors are seeking ways of making their money work harder in the current climate.”

Related Story:  Inflation Fears Boost Hedge Funds’ AUM To Nearly $4T

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