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'Investor confidence in asset classes jumps, but caution remains' - Lloyds

Wednesday 25th February 2015

Written by Conor Shilling

February saw a large increase in investor confidence, following a dip last month, according to Lloyds Bank’s latest Private Banking Investor Sentiment Index.  
Average net sentiment – across ten asset classes – now stands at a score of 12%, an increase of four percentage points from last month. 
Sentiment for eight of the ten asset classes has increased over the past month. However, Lloyds has recorded a fall of four percentage points in the confidence of Eurozone shares, which now stands at -46% as well as a decline of one percent in Commodities bringing its score down to 1%.
Lloyds says that February’s positive swing in overall asset class performance broke January’s negative monthly change, which was the sixth in the past eight months, and is the highest average change recorded since October 2014. 
UK property recorded the largest positive month-on-month gain with net sentiment increasing nine percentage points. Japanese shares were the next biggest net gainer, rising by eight percentage points, however they still sit at a relatively negative sentiment of -5%. UK shares also saw an eight percentage point increase, offsetting January’s six percentage points fall. 
All of the four sterling-denominated asset classes recorded a positive performance with UK Government bonds rising eight percentage points and UK Corporate bonds increasing three percentage points. 
“This month has seen a notable improvement in asset class performance and paints a more positive picture for 2015. Only two of the ten asset classes, led by the Eurozone, recorded declines and all four sterling-denominated asset classes have seen a positive performance – the first time in four months,” said Ashish Misra from the Wealth Investment Office at Lloyds Bank Private Banking.
“However, investors still remain cautious, looking towards perceived safe haven assets including Gold, Japanese shares and even US shares for shelter from the storm. One to watch throughout the course of the year could be Emerging Market shares, which, following a muted performance over the last few years, could start to play catch up with the other asset classes,” he added.

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Editorial Contact Details - Conor Shilling
0845 672 6000
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