INVESTOR CONFIDENCE TURNS POSITIVE

IMA PUBLISHES INITIAL FINDINGS OF GREAT BRITISH INVESTOR REPORT

Investor confidence turned positive last month, with the IMA GB Investor Confidence Index (UK GB ICI) reaching 106 in May 2009 (on a scale of 0 - 200, 100 being neutral). Compared to six months ago, overall confidence has swung positively by 35 points.

The IMA GB Investor Intentions Index (UK GB III) in May 2009 was 99 (on a scale of 0 - 200, 100 being neutral). This is up by 10 points since November 2008. This shows that investors on the whole are neutral about putting money into new investments.

Commenting, Richard Saunders, Chief Executive at IMA said

"These findings suggest that investors are feeling more optimistic about the investment market than they did six months ago although they are still cautious about re-entering it. This improved mood is consistent with IMA sales statistics which show modest net retail inflows into equity funds over the last two months, but much healthier ones into corporate bond funds over the last six months, with April's overall retail sales being the highest in three years."

Other initial findings are:

• Over 50% of investors think that the current investment market has improved compared to six months ago and a similar proportion (51%) think now is a good time to put money into investment products.
  
  
• Less than half (47%) of investors think the economic slowdown will last 12 to 24 months, an improvement since November when 58% of investors thought it would last 12 to 24 months.
  
  
• Amongst those who are likely to increase their investments over the coming 12 months, equities are the most popular investment option (51%).
  
  
• Over half of investors who rate property as a good investment think the residential property market will continue to fall for 12 months or more before recovering.
  
  
• 53% of investors think it will take over two years for the FTSE 100 to return to 6000.

The full IMA Great British Investor Report and its findings will be published later in June.

ENDS

Notes to the Editor:

1. The survey was conducted by YouGov, looking at the behaviour, confidence, intentions and concerns of Britain's retail investors. YouGov surveyed a cross-section of 4,396 investors holding one or more retail investment products between 7^th -11^th of May 2009. 

2. IMA is the trade body for the UK's £3.4 trillion asset management industry.  The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.  Its role is to represent the industry and promote high standards.

For further information, please contact:
Noreen Shah, Press Officer, IMA, 0207 831 0898
Mona Patel, Head of Communications, 07834 089332