The valuations at which UK equities presently trade are such, that the political risks which have hobbled the asset class, are now “absorbed”, according to Steve Magill, head of the Global Value Equity team at UBS Asset Management.
Of the £6bn run by his team, around £3bn is in UK equity mandates.
Speaking to FT Adviser, he said that although there have been long-term shifts in global investors attitudes to UK equities, much of it based on the composition of the market, it was also the case that investors attached a higher risk premium to UK equities after the 2016 Brexit referendum result.
Magill said: “I can understand why they did that, as the political climate increased the level of uncertainty around investments, and indeed the level of business investment in the UK has fallen.
But I think whatever the consequences of Brexit, they have been felt in the economy, now the market has absorbed them via the discount on UK…
