"The UK government’s freedom and choice pension reforms have been successful in making people take real interest in their pensions and the underlying investment choices."
Mainstream equities came in second at 22%, followed by government bonds at 13.2%. A alternative investments (termed in the poll as collectibles, art, wine and classic cars) were favoured by 5.8% of respondents.
Three surveys conducted over a period of about seven months also showed that investors lowered their expectations for property funds (11.1%, down from 17.4% in March 2016) as Brexit-related concerns brought UK real estate prices under pressure.
In contrast, the number of people who showed interest in commodity funds more than doubled (15.3%, up from 7.2% in March 2016) as gold regained its traditional status as the “safety asset” amid market uncertainty around Brexit and what it will mean for the UK, Europe and central bank policy.
Adrian Gordon, Head of Institutional, HSBC Global Asset Management, said: “The UK government’s freedom and choice pension reforms have been successful in making people take real interest in their pensions and the underlying investment choices. Our latest data shows that pensions continue to be at the top of people’s savings priorities despite market volatility, with asset allocation continuing to favour mainstream equities over areas that investors know less well, such as alternative investments.”
Dr Guy Morrell, manager of the HSBC Open Global Property Fund, added: “While many UK investors have recently turned away from some property funds, property can still play an important part of a diversified portfolio. The key is the kind of fund investors opt for. A global approach to property investment means we are less exposed to the UK market than pure domestic funds. Additionally, blending of funds investing in physical property and listed property equities provides a high level of liquidity and enables portfolio to adjust as the situation changes.”
