Data provided by the CFA UK Valuations Index shows that 68% of UK-based investment professionals hold this belief compared to 34% last year.
The number of investment professionals who think government bonds are overvalued has also increased over the timeframe, from 72% to 83%.
While there have been changes in opinion towards equities, it has been less marked. The proportion of professionals viewing developed market equities as undervalued in Q1 2013 has fallen by seven percentage points since Q1 2012, while there has been a five percentage point increase in the proportion that believe emerging market equities are undervalued over the same timeframe.
The CFA UK Valuation Index is a quarterly study which asks investment professionals to rate a range of assets classes as either very undervalued, undervalued, fair value, somewhat overvalued and very overvalued.
Will Goodhart, chief executive of CFA UK, said: “When we launched the Valuations Index a year ago, the overwhelming majority of investment professionals viewed both government and corporate bonds as overvalued. They are even more certain that is the case today. The increase in those who see corporate bonds as overvalued has been particularly dramatic. On the other hand, despite the increase in equity values since our last survey, most respondents continue to believe that equities are undervalued – emerging market equities in particular.”
