Confidence in UK asset classes surges year-on-year

Investor confidence in UK asset classes has surged year-on-year according to the latest Investor Sentiment Index from Lloyds Bank Private Banking.

Year-on-year, investor confidence in UK shares and UK Government bonds increased by 11 and 14 per cent respectively.

However confidence in UK property as an asset class fell for the third consecutive month.

Despite being the highest scoring asset class on the index with 41 per cent, UK property confidence fell by 5 per cent in August.

Owing to the growing confidence in UK shares this has now has an index level of 38 per cent. 

Net sentiment towards the eurozone among investors dropped by 3 per cent to minus 21 per cent. As a result this is the only asset class that is viewed negatively on a net sentiment basis. 

UK Government bonds are not the only safe asset gaining in popularity as gold increased by 2 per cent in August.

Lloyds Bank Private Banking head of investment policy Ashish Misra says: “While we have continued to see a month-on-month decrease in UK property, this could be a reflection on the market as this drop reflects a stabilising market across the UK. The consecutive increase in gold alongside the strength in Government bonds could be viewed as ‘safe haven’ investments given the mix in market conditions across Europe.

”Overall, and the third straight month of decline in overall sentiment notwithstanding, the net score remains firmly positive and current short-term trends indicate a moderation, rather than any strong reversal, in investor sentiment.”