Lloyds: Investment fund managers believe stock market is past lowest point

28 May 2009 / by Rebecca Sargent
More than a third of investment fund managers with personal investments believe that the stock market has past its lowest point, research from Lloyds TSB has revealed.

According to the study of 135 UK investment fund managers, almost half have shown their faith in the stock market by ploughing more of their personal portfolio into stocks and shares.

The research boosted confidence in the markets further by finding that 56 per cent of fund managers expect to profit quickly form their stock market investments due to an upturn in the markets in 2009.

Meanwhile, despite a trend of flight to safety, and an increase in consumer savings account deposits since the financial crisis began, 34 per cent of the fund managers questioned have reduced the cash holdings in their portfolios, the majority of which have done so because they believe stocks and shares will outperform cash in the coming months.

Commenting on the findings, Prabal Gupta, propositions, investments and marketing director at Lloyds TSB UK private banking, said: "Unfortunately nobody can foresee the future of the markets. However, individual investors might be encouraged by the fact that the UK's fund management professionals – many of whom manage phenomenal amounts of money for private and institutional investors – are starting to see light at the end of the tunnel.

"Investing in shares certainly isn't right for everyone. But for those who are willing to build some risk into their portfolio, the signs are there that this could be an opportunity for investors to capitalise for the long term based on extremely attractive current valuations," Mr Gupta added.

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