The UK stock market has suffered its biggest investor exodus for more than two decades as fund managers increasingly treat Britain like an emerging economy, analysts at a leading investment bank have warned.
A closely watched monthly survey of international fund managers conducted by Bank of America found investors have significantly cut their holdings of British shares, with allocations to UK equities sliding from a net 2 per cent “underweight” position in August to a net 20 per cent “underweight”.
This represented the biggest monthly rotation out of British shares since April 2004 and matched the heaviest such drop on record, Elyas Galou, an investment strategist at Bank of America, said.
“UK assets are the most unloved assets right now,” he said. “Investors are now almost considering the UK as if it were an emerging economy.”
The findings deal a blow to Rachel Reeves as she tries to bolster the economy and faces…
