Lloyds Private Banking released the latest investor sentiment rankings for the month of September.

UK investor net sentiment fell by 1.3 per cent in the month of September to 2.9 per cent from 4.3 per cent in August, according to the latest data, suggesting some worries about trade protectionism and developed markets' valuations are taking some toll.

Lloyds Private Banking released the latest investor sentiment rankings for September. The total sample size was 4454 adults, of which 1105 were investors.

UK government bonds saw the highest rise in investor sentiment at 3.2 per cent, this was followed by UK corporate bonds (2.2 per cent) and UK shares (1.8 per cent). UK-based investments were the only rises of net sentiment during September.

The two biggest falls in September were gold with a decrease of 6.2 per cent in net sentiment, followed by emerging markets' shares with a 5.1 per cent drop.

“Cyclically-adjusted price/earnings ratios point towards significant undervaluation of 19 of the 24 emerging equity markets on our radar. Many emerging market currencies – like Turkey’s Lira - are trading at rock bottom levels,” Markus Stadlmann, chief investment officer at Lloyds PB, said. “By contrast, investor sentiment has been undermined by US-China trade tensions, and turmoil in Turkey and Argentina. This divergence could be a long-term investment opportunity in the making. The economic resilience and growth potential of more than a handful of emerging markets is undiminished. As a result, we’re increasing the amounts we invest in certain countries within emerging markets.”