Brexit Hits Stocks with UK Revenues

Domestically oriented UK firms have significantly underperformed stocks with greater international revenue diversity since the EU referendum

Tom Whitelaw 21 December, 2018 | 12:28PM
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Only 27% of the FTSE All Share Index’s revenues come from the UK. As a result, the UK stock market has one of the smallest home-country biases in terms of revenue out of all the major global markets because of the large number of international businesses with global operations that reside here.

How Badly Has Brexit Hurt UK Earners?

It’s hard to think of another event in recent memory that’s caused more uncertainty for UK businesses than Brexit.

Our revenue index, which weights UK companies based on where they earn their income rather than simply where they are listed, goes back only to August 1, 2014. Comparing the performance of both the revenue index and the Morningstar UK Large-Mid Index over that period, we saw our revenue index get off to a handsome start.

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Tom Whitelaw