You are here: Home - Investing -

Investor confidence in bonds and international equities grows

0
Written by:
14/04/2014
Private investor confidence in bonds and non-European equities surged last month, according to research from Lloyds Bank.

The monthly Lloyds Bank Private Banking Investor Sentiment Index found that net sentiment among investors in UK government and corporate bonds increased by five percentage points in March, while US and Japanese shares and gold all increased by four percentage points.

Ashish Misra, head of investment policy at Lloyds Bank, said: “This month’s increase in positive sentiment towards government and corporate bonds asset classes likely reflects the rising levels of investor anxiety around the current situation in Ukraine, as well as the economic risks of increasing signs of a growth slowdown and early signs of an asset quality issue within the banking sector in China.”

Sentiment towards eurozone shares registered a score of -10, an improvement of four percentage points, while sentiment towards UK shares fell for the first time since November 2013.

Emerging market shares saw a decrease of three percentage points this month following a four percentage point rise last month. Lloyds said the dip in sentiment could be due to investor concerns about Ukraine.

Since the Index’s inception last year, investor sentiment has remained overall positive. Only sentiment for gold and emerging market equities have fallen over time. 

Misra added: “The movement in sentiment away from perceived safe haven asset classes like gold and towards asset classes with a potentially higher risk-return profile – while still keeping government bonds in the mix – gives us some insight into the minds of self-directed investors.

“Over the course of the last 12 months, there appears to have been a greater willingness to assume risk in the pursuit of potentially higher returns, while at the same time an acknowledgement of the need to maintain a well-diversified exposure to different, less well-correlated, asset classes as well. It will be interesting to see if future sentiment scores continue to bear out this refinement of investment thinking in retail investors’ minds.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Online registration opens for M&S current account

Customers can now pre-register their interest in the new M&S Current Account ahead of its launch.

Close