Investor attitudes to UK assets buoyed by Election outcome

The bank’s Private Banking Investor Sentiment Index showed the largest rise for UK shares since March 2013, with the asset class climbing 14 percentage points to 40 per cent.

UK property also performed well in Lloyds’ monthly tracker, with a eight point increase in sentiment to 55 per cent.

As a result, this month marked the largest collective increase for all UK asset classes since the survey was launched two years ago.

Ashish Misra at Lloyds Bank Private Banking, said June saw the highest year-on-year rise in net sentiment across all asset classes, largely driven by UK assets.

He said: “This is likely due to the result of increased political and economic certainty following the general election in May.”

By comparison, confidence in international shares declined, with embattled eurozone shares down six points to -29.3 per cent. Japanese shares were down four points to 2.2 per cent.

After UK shares and UK property, gold was the third-best viewed asset at 30 per cent, with investors seeing its stability as an attractive investment.

However, market returns did not reflect investor perspectives, as eight out of the 10 asset classes reporting decreased returns in the last month.

Only UK property and Japanese shares remained in growth, up 1.3 per cent and 5.6 per cent respectively.