· Majority of wealthy Channel Islanders surveyed invest in UK assets
· Channel Island investors surveyed maintain low exposure to Eurozone, although almost half admit their portfolios are not well-diversified
· Channel Islanders remain more cautious about the outlook of their investments than UK counterparts
Research by Lloyds Bank Private Banking reveals that 90 per cent of Channel Islanders surveyed said their investment portfolios contain UK assets, demonstrating strong confidence in the UK economy. However, of those Islanders, 95 per cent state that they have no assets held in the Eurozone, which seems to indicate low confidence levels in the area.  
Although confidence in the UK seems to be high, attitudes of Islanders have been fairly consistent over the last six months, with 46 per cent of investors believing the outlook for their investments remains the same as it was six months ago.  However, Islanders appear to be more cautious than their UK counterparts; 42 per cent of UK based investors surveyed believe the outlook for their investments is better than it was six months ago, while only 19 per cent of Channel Islanders believe the same.   While the research indicates strong levels of investment in the UK, it also shows that 47% of Channel Islanders believe their investment portfolios are not well-diversified.   “The research indicates that support for the UK economy continues to be strong; however, it is concerning that almost half of the Channel Island investors surveyed feel that their investment portfolio is insufficiently diversified.  It will be interesting to see if this dissatisfaction leads to the movement of investment from the UK into other jurisdictions such as the US, Asia or the emerging markets. It is important that investors remember fundamental principles such as diversification, a diverse portfolio is more likely to outperform in the long run,’ said René Thébault, Islands Senior Investment Manager of Lloyds Bank.    
‘Certainly, on a 12-month view our outlook for returns from UK equities remains quite robust and this is reflected in our strong representation on this asset class within our client portfolios. Our outlook for UK fixed income asset classes – particularly Gilts – is, however, notably more muted although recent price weakness in this asset class has prompted us to move to a more neutral stance.”