Investor sentiment a tale of two sides

Investor optimism has improved over the past six months and UK and international shares in particular have become more attractive investment prospects.

Investor sentiment a tale of two sides

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Demand for UK shares has increased by 12 points since the start of the year meaning it remains the most popular investment class, according to data provided by Core Data’s i-Sight survey.

International shares saw the biggest surge in investor appetite at 14 points, putting them one point behind UK shares in terms of investor confidence.

Sentiment towards property increased seven points, but remains negative overall, while alternatives inspire the least confidence, with a negative sentiment reading of -17 points.

Regional scores

The MENA and Eastern European regions remain the least attractive regions, while BRIC lost eight points during the first half of the year as confidence in India dropped by three points. Despite the its stuttering economy, sentiment towards China remained unchanged.

Global and Asia Pacific ex-Japan both recorded a small increase in sentiment, while Latin America consolidated some of the gains it made in the first half of the year, adding two points to the 24 it had gained at the start of 2013.

IMA sector drops

All nine IMA sectors have seen a fall in sentiment during the second half of 2013. UK Equity Income was the most popular sector, but a 12 point fall in sentiment has seen it drop to second place behind UK Equity Income & Growth.

Sentiment towards bonds and fixed interest has continued its decline, which has worsened following the US Federal Reserve’s QE announcement last month.

Sterling High Yield has seen the largest drop in sentiment, and continues to languish in bottom place now with its worst points score since the introduction of the survey in 2011, -27.

 

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