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UK Investor confidence improves

posted Oct 27, 2009, 9:19 PM by Stacey Riggs   [ updated Oct 27, 2009, 9:21 PM by Yale ReiSoleil ]
A majority of active investors plan to increase their exposure to the stock market over the coming months, according to research from the Association of Investment Companies (AIC).

Some 52 per cent of the 1,204 private high net worth investors surveyed intend to increase their equity allocation, compared to 33 per cent a year ago. Confidence has not been as high since February 2006, according to the AIC.

The general public, while still broadly pessimistic about shares, have become marginally less gloomy over the past year. Some 19 per cent of the 2,010 UK adults polled think equities will outperform the housing market over the next 12 months, the highest figure since the AIC began conducting its research in 2004.

Among active investors, blue chip stocks remain the most popular sector, finding favour with 20 per cent of respondents compared with 17 per cent opting for smaller companies and the same percentage for resources and commodities. Commercial property trails on 5 per cent.

Active investors still prefer to put most of their money in their home country, with 67 per cent of those polled saying they are investing mainly in the UK at the moment. Emerging markets are favoured by 11 per cent, up from 5 per cent in February.