The second half of 2012 remains draped in uncertainty for investors with continued weak economic growth in some major economies and unresolved issues in Europe.

The latest CoreData Research Investor i-Sight report reveals the failure of governments (read therein central bank money printing) to stimulate growth has done little to spark investor confidence.

Despite anaemic growth at home in Britain, overseas uncertainty is keeping any appetite UK investors do have within arm’s reach – well not quite but you get the picture?

Appetite for investing in domestic shares has increased by double the extent the appeal for international shares has declined, according to Investor i-Sight index.

Sentiment saw an 8 point uptick in appetite for UK shares and a 4 point decline in their international counterparts.

From a regional point of view UK investor appetite is as follows:

• North America and the UK have seen the greatest improvement in UK investor sentiment since the beginning of the year.
• The former saw the biggest recovery with a 22 point climb into positive sentiment. And the UK saw a 15 point increase in appeal drag it out from 18 months of negative sentiment.
• Investors have fallen out of favour with China the most. From holding the top spot for investor interest, it has dropped 27 points to eighth.
• This also reflects recent comments from the OECD, speaking about its own indicators pointing strongly to economic activity falling below long-term trend in the country.
• Japan’s appeal has been less than impressive in the last four i-sight readings, hovering a little above and at times a little below the 0-degree threshold line, has been pushed 15 points lower into negative territory (to -9).
• Latin America, though still positive (at +8), has also been thrust into the camp of consistently low scoring countries. This collective of countries has dropped 15 points further, carrying on the decline it has been suffering since the beginning of 2011.
• Europe (ex- UK), it comes as no surprise, the bottom of a typical investor’s wish list as a place to invest for the remainder of the year (-64).
• On a different note, the Middle East (-33) remains among the least appealing regions for
• UK investors.
• Suggesting the Arab Spring made a lasting impact on UK investors.
• Emerging Markets carry the greatest appeal for UK investors over the next 6 months (36).
• Although reduced slightly by a 1 point contraction since the beginning of the year, it is however 8 points ahead of Asia Pacific (ex-Japan), which is considered the next most appealing region to invest.

From an investment appeal perspective, which of the following REGIONS of the world could be of interest to you over the next six months (Jul – Dec)?

In short, investor appetite at an asset class level can only be at best described as tepid.

Despite a positive shift in sentiment for four out of six asset classes, the absolute levels of ‘appetite’ remain weak.

Three asset classes (Cash/Money Markets, UK Shares, and Bonds & Fixed Interest) all experienced an 8 point positive rise in sentiment between January and July

Cash/Money Markets had the strongest absolute rating (+41).

International Shares and Alternatives both slipped further since January, with the former retreating 4 points to 16, and the latter dropping 12 points to -36.

The property remains in negative territory (-28) despite some creeping positive sentiment towards it – up 5 points.

Any asset managers out there thinking of trying out a different job? We wouldn’t blame you if you did.