UK investors are prioritising security over returns as they plan their investment strategies for 2021, according to new research by Butterfield Mortgages Limited (BML).

A study by the prime property mortgage provider revealed that 48% of investors have seen their portfolios decrease in value in 2020 as a result of COVID-19.

The findings, based on a survey of 885 UK investors with portfolios worth over £10,000 – excluding primary property, pensions, savings and SIPPs – also showed that 35% have moved money from high-risk to low-risk investments this year.

Another 28% of UK investors have changed financial services providers in 2020 due to the poor service they have received during the pandemic.

BML CEO, Alpa Bhakta, called 2020 a “whirlwind year” for investors.

“Clearly, the volatility and uncertainty caused by the pandemic has meant investors are favouring security over returns by looking to safe haven assets,” Bhakta said.

Looking to 2021, BML revealed that three in five (59%) investors will be looking to low-risk asset classes next year, which rises to 63% for investors with a financial portfolio valued over £50,000.

Elsewhere, the study found that 47% of respondents do not plan to make any significant investment decisions until they can physically meet with financial service providers or advisers.

“With the government’s recent spending review highlighting the vast economic repercussions of COVID-19, it is clear why investors are hesitant and not planning to make major decisions until there is greater certainty,” added Bhakta.

“For service providers, customer engagement remains extremely important. From banks through to mortgage providers, firms need to be in regular contact with clients, offering them the support and advice needed to help them overcome the challenges they are currently facing.”

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