Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Big investors are positioning themselves for “a turning of the tide” for London’s unloved stock market, hoping that an improving economy, lower interest rates and political stability will finally boost cheap British shares.
International asset managers including BlackRock and Allianz have joined UK fund houses such as Ruffer and Rathbones in raising their exposure to UK-listed stocks in recent months.
After years of disappointing performance compared with European and US markets, investors now see UK valuations as attractive. According to flow data from Bank of America, its institutional customers have since May switched from being net sellers of UK equities to net buyers — reversing a long-standing industry trend.
Figures from Morningstar show three consecutive months of inflows into mid-sized UK stocks…
