63% of investors have changed their portfolios ahead of the US election — and increasing cash was the most common move, UBS survey says

• Sixty-three percent of investors and business owners in the US surveyed by UBS have changed their portfolios ahead of the US election.
• Increasing cash was the most common portfolio adjustment, and many investors say they will continue to increase their cash holdings following the election.
• UBS also surveyed investors on which candidate they prefer for the economy, and what portfolio actions they would take given a Trump win versus a Biden win.

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More than six in 10 investors in the US said they have made changes to their portfolios in anticipation of the election, according to a new UBS survey.

The world's largest wealth manager surveyed 1,000 investors and 500 business owners in the US in the second half of October and found that 63% of respondents have adjusted their holdings in anticipation of the vote. The most common action was increasing cash — 36% of investors said they have done so ahead of the election. Thirty percent of investors adjusted their sector allocations, while 27% added portfolio protection of some kind.

More than half of investors surveyed said they plan to make further adjustments based on which candidate wins. If Biden wins, 25% of investors would reduce stocks, and if Trump wins, 29% of investors would increase their stocks. Roughly a quarter of investors surveyed said they would increase cash with either candidate winning. Three-quarters of investors see volatility as an investment opportunity.

Read more: The founder of a volatility-hedging program that gained 3,700% in the March crash says 'the opportunity is ripe' for another chaotic market event — and shares how investors can take advantage of it.

Investors also said that an unclear election would impact the stock market. Fifty-two percent said a contested election would result in a market decline, while 19% said it would result in a market upswing, and 29% said there would be no change. Fifty-five percent of investors are concerned about President Trump contesting the result.

The survey further asked investors which candidate they prefer for the US economy. Fifty-two percent of investors and 54% of business owners said they preferred Trump for the economy, while 48% of investors and 46% of business owners said they preferred Biden. Business owners also said it's best for their business if the president and Senate are from the same party.

UBS surveyed investors with at least $1 million in investable assets and business owners with at least $1 million in annual revenue and at least one employee. The survey was conducted from October 16 to 21.