Global investors have finally returned to UK stocks, making their highest allocation to British equities since June 2021.
UK equities were the third most overweight sector from global investors this month, beaten out only by utilities and banking stocks, Bank of America’s latest Global Fund Manager Survey revealed.
Just a month ago, the UK was rated as the least attractive market to invest in among fund managers, with an 18 percent underweight to British equities.
Now, investors are four percent overweight UK stocks, in only the second month since 2022 that investors have been overweight British equities.
Along with the UK, Europe has also been a beneficiary of a shift in investment behaviour, with allocation to Eurozone stocks at the highest since July 2021.
Meanwhile, March saw the biggest drop in US equity allocation ever, amid fears that president Donald Trump’s tariffs policy may kick off a global trade war.
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