UK investors are much less confident than they were six months ago but are keen to invest nonetheless, according to a survey by the Investment Management Association (IMA).
The IMA's confidence index registered 85 on a scale of 0 to 200, down from 104 six months ago. But a majority of investors, 62%, said they plan to add to their investments and only a fifth are considering withdrawing money.
Nearly half, 44%, said the European debt crisis is the factor they are most concerned about and 53% of respondents said they were nervous about investing in the eurozone in the next twelve months. This fear strengthened a natural home bias: only 11% said they planned to invest in eurozone securities, compared with more than half who planned to buy UK securities.
“Despite the downturn in confidence, investor appetite to add to their investments remains strong,” said Richard Saunders, chief executive of the IMA. “Our survey suggests that UK investors are far from panicking.”
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