The future of the UK equities market is likely to look rosier a new poll of private client investment managers and stockbrokers observes.
66% of the individuals from polled firms are expecting increased investment in UK equities over the next 12 months according to the findings. 72% believed there would be a further rally in UK equities within a year and around half of that 72% believed the rally will continue over the next six months.
The poll suggests the industry also believes that there will be a movement from cash into corporate bonds over the same period. The poll observes that 58% believed there would be a reduction in cash and the majority of respondents believed that investment in corporate bonds will increase during a 12 month period.
A substantial group of the individuals surveyed believed banks to be in one of the top three sectors for buy opportunities topped only by oil and gas and pharmaceuticals. This compared with only 4% who believed that the automobile industry was a current buy opportunity.
David Bennett, CEO of APCIMS said:
“We are delighted to be working with one of the leading pollsters in the country, a partnership which will undoubtedly produce important results for anyone following investment.
“ The APCIMS/ComRes poll should in no way be interpreted as investment advice. It is a new indicator of how the individual private investor industry is thinking across the country, with senior managers from Inverness to the Channel Islands participating.
“The results of this first poll should be a welcome shot in the arm for the UK equities market.”
Andrew Hawkins CEO of ComRes said:
“The APCIMS/ComRes poll should become a significant bellwether for UK markets. This significant sample of a vital national industry indicates important trends which should be of real interest to the financial markets. We look forward to plotting trends in the quarterly surveys we have planned over the years ahead”
Mike Lenhoff, Brewin Dolphin Chief Strategist and Chairman of the APCIMS Asset Allocation Committee said:
“Bond and equity markets are reflecting a growing conviction that policy makers the world over will be successful with their efforts to reflate the global economy. Indeed, we may be going through the trough of the recession right now. That said, the prospect of recovery does not mean plain sailing ahead. Inevitably there will be set backs along the way and so it makes sense to maintain an appropriate degree of balance between bonds and equities in portfolios.”
Viscount Tamworth, MD of Ruffer LLP and director of APCIMS, said:
“These results are very encouraging for the UK equities market. However, these are still uncertain and volatile times and investors need to exercise caution when making investment decisions. It is also important that this confidence is not adversely affected by government and regulatory actions burdening our industry sector with inappropriate and ill-considered regulation."