Less than half of investors are satisfied with their portfolio performance after being hit by high inflation and geopolitical conflicts in recent years.

A study from Guernsey-based investment manager Raw Capital Partners found that just 47% of investors were pleased with how their investments have performed over the last 12 months.

More than two-fifths (45%) said that high inflation had made it more challenging to manage their investments, while a third (32%) mentioned rising interest rates have negatively impacted their portfolio performance over the past two years.

A majority (57%) believed the global political and economic landscape this year has been more turbulent than at any other time in the past decade.

The heightened turbulence has influenced investment decisions, with two-fifths (38%) of investors indicating that geopolitical conflicts and instability have affected their strategies over the past year.

When asked about the actions they are taking to manage their portfolios in the current economic climate, two in five (38%) said that diversifying their investment portfolio was a priority to help them manage market volatility.

However, for the majority of UK investors, their outlook is not optimistic. Only 40% said they were confident their investments will perform well in the next 12 months.

Ben Nichols, interim managing director of Guernsey-based Raw Capital Partners, said: “Many investors are struggling to adapt to political uncertainty and macroeconomic trends like high inflation and interest rates – the result is that less than half are happy with how their investments have performed in the past year. 

“With the US elections approaching, and it being unclear how the UK economy will perform in the second half of the year, there could be more challenges to navigate.

“We are by no means out of the woods when it comes to geopolitical conflict and economic headwinds, so it is important that investors continue to protect their portfolios against market volatility by assessing which asset classes and investment tactics can best enable them to achieve their long-term financial goals.”

• The market research was carried out between 13 and 18 June among 2,000 UK adults via an online survey by independent market research agency Opinium. Within the sample, 756 respondents had investment portfolios worth more than £25,000 – that included all assets from bonds and currencies to commodities and stocks and shares but excluded pensions, savings and any property that is used as their primary residency.