With increased global uncertainty, Nutmeg reveals where UK investors plan to invest their money

• At a time of increased global uncertainty, a third (31%) of UK investors lack confidence in the outlook for their investments
• Home bias is strong: two thirds of investors (66%) are planning to invest in UK markets
• Investors are also diversifying with 2 in 5 (40%) opting to spread their investments with a globally diversified portfolio
• Nutmeg has created a brochure with author and broadcaster Simon Reeve showing why it can pay to think globally

J.P. Morgan owned digital wealth manager Nutmeg has published new research¹ showing how global uncertainty is impacting the investment decisions of UK retail investors in the lead up to the end of the tax year.

A third (31%) of UK investors surveyed say they don’t feel confident about the prospect of positive investment returns this year. Even seasoned investors with over ten years’ investment experience feel unsure about financial markets this year, with two-fifths (38%) saying they lack confidence in the investment outlook.

Underpinning the lack of confidence, over half (52%) of investors believe economic uncertainty is one of the top risks facing their investments in 2025, followed by market volatility (41%) and political risk (28%).

James McManus, chief investment officer at J.P. Morgan owned digital wealth manager Nutmeg, said: “At a time of increased uncertainty, an ever-changing global picture and a 24-hour news environment, it can be difficult to filter out the noise and know where to invest. For UK investors this ISA season, there’s plenty of factors weighing on their mind: a new administration in the US, changing geopolitical risk and economic uncertainty at home. The truth is, to greater and lesser extents, all of these will impact how markets perform this year, the level of volatility we see, and the returns investments will deliver.

“We see plenty of opportunities and reasons for optimism for investors that are able to keep a cool head and remain focused on the long-term. Many of the building blocks for long-term investment performance – such as real term wage growth, high employment levels, strong company earnings and stabilising, lower inflation – are in place. While past performance is never a guarantee of future performance, history shows us that by taking a global approach and diversifying your portfolio, investors may mitigate market-specific shocks or volatility and still benefit from growth where it’s available.”

Despite some uncertainty about the outlook, 61% of investors plan to invest in a stocks and shares ISA ahead of the tax year-end deadline. While 16% have yet to make up their mind about where they will invest, 40% of investors are planning to invest across the world via a globally diversified portfolio. At a country level, of those considering equities, the UK was the top market with 66% of investors considering their allocation to UK equities this year, ahead of the US (48%) and Europe (29%).

UK investors share their market hotspots for 2025

McManus added: “Despite the negative news surrounding the economy, UK investors are prioritising their home market this year. While the FTSE 100 has had a good start to 2025, long-term investors in the UK might feel shortchanged compared to other markets, such as the US which has seen considerable returns over the last decade, but is having a challenging start to 2025. The tale of these two economies demonstrates the importance of diversifying your investments across the globe. Holding UK equities alongside the US, emerging markets, Europe and others may be the best way to capture emerging winners, reduce your investment risk, and benefit from global megatrends.”

Nutmeg and travel expert Simon Reeve partner on new campaign

As investors think about their investment strategy for this year and consider global opportunities, Nutmeg has linked-up with Simon Reeve as part of a new campaign to empower people with both their investment and travel choices. The campaign will leverage Simon’s vast experience as an author and award-winning TV presenter who has travelled to more than 120 countries. The campaign will publish a free booklet² showcasing some of the most interesting countries around the world for people to consider investing in and visiting in person, with travel insight and commentary written by Simon and investment analysis from Nutmeg’s investment team.

Simon Reeve, author and broadcaster, comments: “Travel helps to develop a global mindset, teaches us to appreciate different ways of living, and challenges our preconceptions while fostering a sense of connection to the wider world. In the end, travel is not just about the places we visit – it’s about how those experiences shape us. Thinking globally can be hugely rewarding!”

Nutmeg offers a range of globally diversified investment portfolios, suited to investors’ goals and risk profile, and invested in exchange traded funds. With five different investment styles available for stocks and shares ISA investors, clients can choose to have their portfolio actively managed by Nutmeg’s in-house team through the flagship Fully Managed range; invest in companies and bond issuers that take into account certain environmental, social and governance considerations through the Socially Responsible Investing portfolios; opt for a more hands off approach through Fixed Allocation; invest in the trends shaping our future through the Thematic Investing portfolios; or take advantage of the exclusively available range launched in partnership with J.P. Morgan Asset Management, with Smart Alpha. More information on the globally diversified investment options available to ISA investors can be found here: https://nutmeg.com/how-we-invest

1 Opinium survey of 1,000 UK investors undertaken on the 9th to 16th January 2025. Opinium Research is a member of the British Polling Council and abides by its rules.

2 Nutmeg’s investment travel guide, produced in conjunction with Simon Reeve, will be available in early March.

Market performance sourced from Macrobond. Data correct as at 28 February 2025.