Despite a level of caution among private investors, the first bi-annual Great British Investor Report has revealed some signs of optimism in the retail investment market.  

The report, compiled by the Investment Management Association (IMA), contains two new indices detailing investor confidence and intentions. The investor confidence index currently stands at 78 (on a scale of 0-200, with 100 being neutral), showing investors hold a negative view of the market at present. However, the intentions index stands at 98 (same scale as before), indicating investors are reluctant to make new investments but are fairly confident about keeping existing holdings, according to the IMA.

It also found one third of investors believe the credit crunch has created new opportunities for investment. Plus, almost 50% of those surveyed are investing for a rainy day, with one in five simply hoping to cover rising living costs. More than 70% of investors have used a financial adviser at some point and 22% have used one for more than five years.

Richard Saunders, chief executive of the IMA, said the survey would enable the organisation to track the impact of the economic climate on the confidence and intentions of everyday investors.

Commenting on the results of the first survey, he added: “Despite the credit crunch and resulting negative investor confidence in May, investors were surprisingly upbeat. Events since May will no doubt have further affected confidence.”

The report divided investors into one of five groups: discerning investors, who hold 35% of investments; organised investors, with 26%; adventurous investors, with 16%; cautious investors, with 15%; and casual investors, who hold 8% of investments.