UK investors have faith in domestic equities: Lloyds

The head of investment policy for Lloyds Bank Private Banking said it was “positive to see faith in UK shares and other UK asset classes”, but he warned that perceivably riskier asset classes, such as emerging market equities, had sent some savers looking for “safe” asset classes, such as gilts and gold.

According to the Lloyds Bank Private Banking Investor Sentiment Index, 48 per cent of investors are feeling positive towards holding UK equities. Only 34 per cent felt favourably towards the asset class in March 2013.

This improvement may mean more people head towards stocks and shares Isas, away from cash Isas, especially with the Bank of England’s base rate remaining at 0.5 per cent.

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Anna Bowes, former adviser and co-founder of advisory website Savings Champion, said: “If clients haven’t already used their Isa allowance for the current tax year, the key for savers is not to leave it too late.

“While Isas are at the top of the priority list, it would be good to open next year’s Isa as early as possible. The sooner people are earning tax-free interest the better.”

Key facts

48% of investors like UK equities

5% the fall in investors preferring emerging market equities

8% the rise in people investing in gold