UK FUND managers are piling their personal cash into FTSE 100 companies to benefit from an expected upturn in the markets, according to a study by Lloyds TSB UK Private Banking.
Almost half (48 per cent) of the managers have increased their stock market investments to reflect their positive outlook. In the report, 135 of the surveyed fund managers who hold personal investments now have an average of £71,000 of their personal assets in equities.
The move suggests the recent rally in the FTSE 100 reflects a longer-term switch in sentiment, rather than a bear market rally on which investors were looking to cash in.
And confidence is reaching new highs, with 59 per cent expecting their personal investments to boost in value in the coming six months.
A growing contingent believes the FTSE 100 has completely bottomed, with 36 per cent believing it has now passed its lowest point and 15 per cent expecting an imminent pick up.
Lloyds TSB UK Private Banking director Prabal Gupta said the survey was encouraging. “The signs are there that this could be an opportunity for investors,” he added.