Sentiment for UK assets fell in vote run-up

Chris Papadopoullos
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INVESTOR sentiment toward British assets declined in the run-up to the General Election, according to a survey of investors, when polls suggested there was a strong chance of a hung parliament.

The percentage of respondents whose outlook on UK shares was positive minus those that were negative – net sentiment – was 26.3 per cent in May, data from Lloyds Bank Private Banking shows today.

It marks a sharp decrease from net sentiment of 37 per cent in April. However, investor sentiment towards shares in the UK remains higher than in the US and Eurozone.

Net sentiment toward UK government bonds slipped to 12 per cent from April’s 15.5 per cent while corporate bonds saw a fall to 11.6 per cent from 13.9 per cent.

UK property also saw a drop in net sentiment to 47.1 per cent from 48 per cent.

“Having recorded their worst performance since November 2014 across all asset classes, the results show investor unease due to potential economic and post- election uncertainty in the UK in May,” said Ashish Misra from Lloyds Bank Private Banking.