UK equities have seen a swift reversal in fortune over recent months, with the MSCI United Kingdom index having now surpassed its ACWI counterpart for total returns year to date.
And yet, UK equity sectors remain broadly unloved by fund selectors and institutional investors. According to the March 2024 Spring Budget documentation, the average UK pension allocation to the home market stands at just 6%. Meanwhile, data from the Investment Association shows the IA UK All Companies sector has been the single worst-selling sector for the last two full calendar years on the trot. And in the investment company space, the average discount of a trust in the IT UK All Companies sector stands at more than 10% at time of writing (23 May). For trusts in the IT UK Smaller Companies sector, this discount widens to 11.2%, according to AIC data.
See also: Nick Train: UK market is ‘pregnant with value and opportunity’
But Ben Conway…
