View more on these topics

UK investor sentiment hits highest level in over a year

UK investor sentiment has reached its highest level in over a year, despite geopolitical uncertainties, this month’s Lloyds Private Bank survey shows.

The UK bank’s investor sentiment index shows appetite towards investments has increased 6.23 per cent on last year to 6.66 per cent this month and 2.42 per cent more than a month ago.

In particular, investors preferred UK corporate bonds and UK government bonds with sentiment increasing 3.17 per cent and 2.63 per cent respectively.

However, only UK equities experienced a slight dip in sentiment despite a bullish outlook, scoring 8.68 per cent in May, own from 9.06 per cent.

Emerging markets, which was the second most popular choice with UK investors in April, saw the biggest decline in sentiment from 18.77 per cent to 16.75 per cent.

Meanwhile, US equities rebounded from negative sentiment levels in April to reach 6.38 per cent this month, up from -0.38 per cent.

Lloyds Private Bank chief investment officer Markus Stadlmann says: “This month’s data suggests that things continue to look up. The month of May returns the highest investor confidence in over a year and, in line with this, we remain positive about the health of the UK economy.

“In this context, the story we see playing out with global equities is particularly interesting. I am not surprised to note the big rises in confidence for Japanese and emerging market shares that have been recorded over the course of 12 months.”

Stadlmann argues global equities will be the main “performance engine” for those customers who have portfolios made up of a diverse range of asset classes, on a long-term basis. Over the short term, however, he sees the US equities uptrend flattening out, possibly with a correction.

Recommended

UK-Currency-Money-Pounds-Notes-700x450.jpg

Investors pour into UK equity funds

Investors have poured £650m into UK All Companies funds in March, making it the most popular sector for the first time since December 2013, Investment Association figures show. The inflows helped create record net retail sales of over £4bn in March with £1.7bn going into tracker funds, the highest level since June 2013. First quarter net flows […]

NATIXIS PORTFOLIO CLARITY – UK Portfolio Barometer

Natixis Global Asset Management’s quarterly Portfolio Barometer offers insights into UK financial advisers’ model portfolios and the allocation decisions they are making. Natixis’s Portfolio Research & Consulting Group works with financial advisers and other intermediaries to analyse and enhance their model portfolios and help them develop investor portfolios suited to today’s complex markets. The Portfolio […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Leave a comment