Over half of UAE based investors believe a slowing global economy will be biggest risk to their investments in 2019: survey

Dubai: New research* from Old Mutual International and Quilter Cheviot Investment Management has revealed that increasing numbers of UAE based investors are concerned about the impact of a slowing economy on their investments.

Over half of respondents (54%) believe economic stagnation in the world economy will be the biggest risk to their investments in the next 12 months, up from 39% in 2017.

Issues such as growing trade uncertainty, weak economic indicators and a series of global political challenges have pushed major stock market indexes down, something that hasn’t gone unnoticed amongst UAE investors.

The results of the survey also revealed that 43% of investors are concerned about interest rate hikes, versus 26% in 2017. Meanwhile, 41% are wary over falling oil prices, up from 39% in 2017.

Nearly a third of respondents feel Donald Trump’s presidency in the US could pose a risk to their investments; 30% feel geopolitical events such as terrorism may be a threat; while over a quarter of respondents believe the UK exiting the European Union in 2019 could also have a negative impact on investments.  

Mark Leale, Head of Quilter Cheviot Investment Management’s Dubai representative office, comments: “With everything that is happening globally, it is understandable that many investors are concerned there will be an economic slowdown this year. However, our investment portfolios are well diversified internationally, so issues such as Brexit or falling oil prices are often less of a factor than people think.

“Markets will undoubtedly be more volatile in 2019 than in recent years. There are a number of events on the horizon that have fairly unpredictable outcomes, however, we still see attractive opportunities in many markets and continue to recommend the merits of holding a diversified portfolio invested across a range of asset classes.

“Handling risk is a key part of the investment process and managing the downside is inevitable when dealing with stock markets. It is therefore important that the portfolio is correctly matched to the investors’ risk profile and we will be in regular contact with our clients to ensure this is the case.”

Paul Evans, head of region, Middle East & Africa, Old Mutual International, comments:

“The importance of long-term financial planning shouldn’t be underestimated. Despite what investors will see and hear in the news and the impact this is having on the stock markets, markets will rise as well as fall, so it is important to stick to your financial plan in both good times and bad.”

Despite growing concerns over their investments, two-thirds of UAE based investors feel positive over the performance of the UAE economy over the next 12 months. 66% of respondents believe the economy will be strong or perform better than in 2018.

*Old Mutual International and Quilter Cheviot investment and retirement research, August 2018. A targeted piece of research, aimed specifically at investors living in the UAE (mainly Dubai and Abu Dhabi) who use the services of a professional to invest in the stock market. Investors needed to have a minimum of US$50,000 invested. 130 responses were received in total and were a representative cross section of those living in the UAE (expats, NRIs and GCC Nationals).

Investors should remember that the value of investments, and the income from them, can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee of future results.

Any mention of a specific security should not be interpreted as a solicitation to buy or sell a specific security.

-Ends-

For more information please contact:
Sophie Gorman (Quilter Cheviot) 
sophie.gorman@quiltercheviot.com 
0207 150 4246
Neha Popat (Quilter Cheviot) 
neha.popat@quiltercheviot.com 
0207 150 4366

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Quilter Cheviot

Quilter Cheviot, part of Quilter plc, is one of the UK’s largest discretionary investment firms and can trace its heritage to 1771. The firm is based in 12 locations across the UK, Jersey and Ireland and has total funds under management of £24.4bn (as at 30 September 2018). Quilter Cheviot focuses primarily on structuring and managing bespoke discretionary portfolios for private clients, charities, trusts, pension funds and intermediaries.

Quilter Cheviot Limited is registered in England with number 01923571, registered office at One Kingsway, London, WC2B 6AN, England. Quilter Cheviot Limited is a member of the London Stock Exchange; is authorised and regulated by the UK Financial Conduct Authority; has established a branch in Jersey and is regulated under the Financial Services (Jersey) Law 1998 by the Jersey Financial Services Commission for the conduct of investment business in Jersey and by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 to carry on investment business in the Bailiwick of Guernsey; is regulated by the Dubai Financial Services Authority as a Representative Office (and its business name in Dubai is Quilter Cheviot Limited (DIFC Representative Office)); and has established a branch in Dublin, Ireland with number 904906 and is regulated by the Central Bank of Ireland for conduct of business rules. Accordingly, in some respects the regulatory system that applies will be different from that of the United Kingdom.

About Quilter plc:
Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.

© Press Release 2019