UBS Investor Sentiment: Investors concerned about the war yet stay the course with their portfolios

Investors remain confident in their region’s economy and stock market, even though many expect prolonged and increased inflation

High-net-worth investors remain deeply concerned about the impact of the war in Ukraine on the global economy and rising inflation, according to the new quarterly Investor Sentiment survey from UBS, the world’s leading global wealth manager. The survey, which polled over 2,500 investors and 1,000 business owners across 14 markets globally, found that 92% of investors expect the war to increase inflation, with more than half believing inflation will last longer than 12 months.

According to half of investors surveyed, market volatility is higher than usual. Most investors foresee a negative economic impact from the war, with 66% expecting higher energy prices, 64% expecting more global instability and 60% concerned about increased cyber-attacks. However, investors aren’t adjusting their portfolios yet, but are poised to do so should the market decline further. Many are now more likely to consider buying gold, domestic stocks and oil, while technology and energy remain the most attractive sectors in the current market environment.

“Investors globally are clearly concerned about the personal and economic impacts of one of the largest humanitarian crises in decades,” said Iqbal Khan, President of UBS Europe, Middle East, and Africa and Co- President of UBS Global Wealth Management. “The long-term economic implications of the war in Ukraine are difficult to assess, but most investors remain optimistic on their outlook for the stock market and are confident in their well-diversified investment portfolio.”

The sources of concern for business owners increased this quarter with geopolitical instability joining rising material costs, tax increases, heightened regulations, and supply chain issues. As a result, confidence in their own businesses for the next 12 months declined 11 percentage points. The survey found business owners tempering their hiring and investment plans and are focusing on increasing their employee benefits, IT spending and upgrading talent.

“The impact of the war in Ukraine and rising inflation have forced business owners to again adapt to an unprecedented and unpredictable situation, after managing the effects of the pandemic on their business,” said Tom Naratil, President of UBS Americas, and Co-President of UBS Global Wealth Management. “In a tight labour market, business owners are working with their financial advisors on employee wellness offerings such as UBS’s Workplace Wealth Solutions, to bring greater value to their employees.”

Jersey Community Foundation awards over £80,000 to projects that will celebrate and commemorate Her Majesty’s Platinum Jubilee

In January 2022, the Jersey Community Foundation confirmed the creation of the Platinum Jubilee Lottery Fund to support projects helping the community celebrate the Queen’s 70-year reign.

The Platinum Jubilee Fund will ensure that thousands of people from across the Island will have the opportunity to take part in exciting creative events – all in celebration of the Platinum Jubilee. From storytelling and making new music, through to woodland restoration, there will be a huge range of exciting activities for people of all ages and backgrounds to get involved in.

Gouray Church was one of the successful applicants and they are planning to hold a Jubilee Celebration, bringing the world-renowned choir of Kings College Cambridge to Jersey. Educational workshops will be available, and a concert will be held that focuses on heritage and youth as well as a Jubilee service with excerpts from the Coronation music composed for Her Majesty’s ascent to the throne.

Girlguiding Jersey will aim to hold a Jubilee Party to bring all 357 members of Girlguiding and members of the Trefoil Guild (Guiding for Adults) together. As the Patron, The Queen is an important figurehead for Girlguiding Jersey.

Jersey Heritage has received funding for their project, The King Charles II Experience, which will provide a historical link between Jersey and England through the past from King Charles II to Elizabeth II, highlighting the importance of Jersey and its place in restoring the monarchy.

Michelle Hervieu, Project Lead said: “The close link between King Charles II, Jersey and the present Queen have never been fully told and the importance to the crown of this small island and the events of the 17th century when the world was turned upside down meant that Jersey was at the very heart of the biggest changes England had ever seen.”

Another example to demonstrate the variety of projects being funded is a Joint Cadet Celebration on behalf of the Islands Cadet Forces; Sea Cadet, Combined Cadets, Army Cadets and Air Cadets providing a combined day of events for the staff and cadets to enjoy, with each person being issued with a specially commissioned Challenge Coin.

In all, 18 separate projects were awarded funding ranging from £1,000 to the maximum of £5,000 and all of them adhere to the three key themes of Young People, The Environment and Tradition.

Anna Terry, CEO of the Jersey Community Foundation said, We were delighted to receive such an enthusiastic response to our call for applications. Each of the projects being funded is a unique opportunity to celebrate this momentous occasion and they are all varied and inclusive to ensure that the whole Island has an opportunity to take part.”