Investors failed to take profits after rally

Private investors in the UK lost £11.5 billion (€13.5 billion) between the end of last year and June 18 with the value of their holdings falling to £210.7 billion.

Capita Registrars says investors did not anticipate the market dip that began in early June and therefore failed to take profits after the market rally this year.

Instead, they continued to buy right up until the end of May.

Since the end of last year, private investors added £2.3 billion to their holding. Despite the recent dip in the market, they continue to bet on a stronger economy and favour cyclically sensitive sectors.

Dividends are expected to drop by £200 million to £8.8 billion.

“Rising share prices certainly attract new money, but the vast sums being paid out by UK firms in dividends provided have also proved an important lure, as investors have struggled to find income anywhere else,” Capita Registrars notes, highlighting also that “income will be harder to come by this year”. 

Capita Registrars provides share registration, corporate actions and share plans among other services.

©2013 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST