Investors have remained bullish on the UK despite the political noise caused by the outcome of the snap election, according to the Lloyds Bank Investor Sentiment index.
In June, sentiment towards UK equities rose by 4.82 percentage points to 13.5%, while on a 12-month view it is up 7.04 percentage points, highlighting investor confidence on the prospects of the UK.
Investors seem to remain "unconcerned" about Brexit negotiations and the General Election result on 9 June, when Prime Minister Theresa May failed to secure a majority.
Markus Stadlmann, CIO at Lloyds Private Banking, said: "Although our index takes a global perspective, the more interesting angles this month are playing out closest to home.
"If we look at UK equities, investors are unconcerned about shifting political tides and slowing business activity growth. Sentiment is more than double what it was this time last year."
Elsewhere, UK investor confidence on Europe is continuing to improve as the political risk has largely been removed by French President Emmanuel Macron's victory in the presidential election in May.
Despite investors remaining cautious, eurozone equities recorded the largest rise in sentiment this month, increasing by 5.20 percentage points, though it remains in negative territory at -11.93%, suggesting cautiousness remains.
Stadlmann said: "Meanwhile across the Channel, eurozone shares are steadily emerging from a prolonged spell of intense unpopularity.
"Investors will have taken comfort from some of Europe's geopolitical uncertainties easing off since the start of the year.
"That said, we are seeing some big regional differences emerging - Spain's economic recovery is impressive, while Italy's ongoing structural banking crisis is worrying."
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