UK Model portfolio providers (MPPs) reduced their exposure to UK equities in the second quarter despite hiking their overall allocation to equities in a bid to boost returns, new data from ISS Market Intelligence (ISS MI) reveals.
The data shows that MPPs in aggregate reduced their weighting towards the UK All Companies sector as the sector’s share of gross sales into model portfolios fell 1.1 percentage points in H1 as performance lagged other markets, most notably the US.
In the 12 months to 10th October, the FTSE All-Share returned 10.1%, less than a third of the 33.6% that the S&P 500 returned.
Despite their relatively weak performance, UK equities maintained a significant weighting in model portfolios in Q2, accounting for 8.1% of gross sales into model portfolios on average – the fourth highest share of any sector.
While MPPs decreased their sales weighting of UK shares, they increased their overall…
