HL Investor confidence survey shows UK optimism rising, while FTSE 100 inches up
Q1 2021 hedge fund letters, conferences and more
- Investor confidence has risen again in April to another record high score this year, and the highest reading since March 2014.
- Confidence in North America & the UK market has risen the most, both rising by 8 points each.
- The biggest drop in confidence can be seen in Europe, dropping by 7 points.
- Confidence in the UK Economic Growth has also risen this month, rising by 12 points.
- Confidence that interest rates are going to be higher in both the mid to short term has risen slightly this month.
- Most popular funds include Baillie Gifford American, Marlborough UK Micro-Cap Growth and HL Multi-Manager Balanced ManagedTrust.
- Most popular shares include Legal and General, Lloyds and Tesco.
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown:
A Surge In Investor Confidence In The UK
“There has been another surge of confidence in the UK as Brexit uncertainty has continued to ebb away. Although lots of companies are encountering more red tape, Overall the economic impact of a post-Brexit world appears to be lower than investors expected. Our measure of sentiment towards the UK is higher than it’s been since well before the Brexit referendum, back at levels last seen in March 2014.
The UK is considered to be ahead of the curve in vaccine efforts and that’s also helped put wind in the sails of confidence. The FTSE 100 has fallen back from the psychologically important 7,000 mark this week over concerns about fresh covid mutations, but it is creeping back up. The pattern of two steps forward, one step back is likely to continue for some time as an uneven recovery unfolds. Stocks linked to the travel sector continue to be the laggards in this economic revival. Airlines IAG and easyJet have gained ground today but they are still well below pre-pandemic levels. Exhibitions giant Informa, which revealed a big accounting loss today is among the top fallers on the FTSE 100 over fears international business travel won’t bounce back any time soon. However, as the UK inches along the re-opening road map, with social distancing measures on track to be lifted by the end of June, clients are hopeful that UK companies will bounce back strongly during the second half of the year. President Biden’s stimulus programmes appear to be boosting sentiment in the US as well, with hopes that the mass spending plans will filter through to UK assets. But we should remember that confidence is coming from a low, depressed base and the bounce is more pronounced because of just how out of favour the UK has been in recent years.
Post popular funds and stocks in ISAs since the 6 April 2021.
In alphabetical order and by net trades
| Baillie Gifford American |
| Baillie Gifford Managed |
| Baillie Gifford Positive Change |
| Fundsmith Equity |
| HL Multi-Manager Balanced Managed Trust |
| HL Multi-Manager Special Situations Trust |
| HL Select Global Growth Shares |
| Marlborough Nano-Cap Growth |
| Marlborough UK Micro-Cap Growth |
| Rathbone Global Opportunities |
Most popular shares and overseas shares into ISAs since 6 April 2021.
| Legal & General Group plc |
| Coinbase Global Inc |
| Lloyds Banking Group plc |
| Rolls Royce Holdings Plc |
| International Consolidated Airlines Group SA |
| Tesla Inc |
| GlaxoSmithKline plc |
| BP Plc |
| Tesco plc |
| Argo Blockchain Plc |
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