Are Investors Right to Ignore UK Equities?

Pessimism towards UK equities hit an all-time high in March, according to Bank of America Merrill Lynch

David Brenchley 22 March, 2018 | 9:28AM
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Reckitt Benckiser brand Dettol Finish consumer staples pricing power equity stocks UK market

UK stocks continue to remain out-of-favour with investors, as uncertainty over Brexit weighs on sentiment. Pessimism towards UK equities hit an all-time high in March, according to the most recent Bank of America Merrill Lynch fund manager survey. It found 42% of investors surveyed are underweight the region. The UK remains the consensus short amongst fund managers, it adds.

It’s well established that investors are pulling cash from UK equity-focused funds. Morningstar Direct data show more than £6 billion has been pulled from funds in the Investment Association UK Equity Income, UK All Companies and UK Smaller Companies sectors in the year to 28 February.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Babcock International Group PLC329.20 GBX-0.78
Imperial Brands PLC1,558.00 GBX0.10Rating
Reckitt Benckiser Group PLC5,391.00 GBX-1.98Rating

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk