UK fund managers predict bottom of market and pile into FTSE

UK Fund Managers are planning to increase their personal investments in UK shares to benefit from an expected upturn in the markets, according to a new study from Lloyds TSB UK Private Banking.

Research amongst 135 UK fund managers who currently hold personal investments or have held them in the past six months, has found that these finance professionals have an average of approximately £71,000 of their personal portfolio invested in near-liquid assets.

And current turbulence in the financial markets hasn't stopped fund managers from chopping and changing when it comes to their personal portfolios. Seven out of ten (68 per cent) have made changes to the structure of their investments in the past six months and nearly half (48 per cent) of those have put their trust in stocks and shares - increasing their stock market investments.

Asked about their future investment plans, the majority of fund managers are demonstrating confidence in the markets. Six in ten (59 per cent) say that they expect to increase the value of their personal investments in UK shares in the coming six months, and 56 per cent expect to profit quickly from their stock market investments due to an upturn in the markets in 2009.

Despite evidence of a general flight to safety and an increase in consumer deposits since the financial crisis began, 34 per cent of respondents admit that they have reduced their cash holdings - 71 per cent because they believe that stocks and shares will outperform cash in the coming months.

Fund managers also believe that the recent plummet in the value of the FTSE may have come to an end. Thirty six per cent believe that the stock market has now past its lowest point - including 15 per cent stating that they believe the markets will pick up soon.

Prabal Gupta, propositions, investments, and marketing director, at Lloyds TSB UK Private Banking comments, "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."

Lloyds TSB UK Private Banking provides investment advice to those who earn more than £60,000 per annum (joint income, £80,000) or have investable assets of more than £100,000.

For more information, visit lloydstsb.com/privatebanking