The fund has a robust track record – it is ranked fifth out of more than 200 funds in the sector during the past three years.
Perhaps BMO’s example shows the UK is currently trading at an enticing discount, compared with other developed markets, and there could be opportunities if the appetite is there.
Key Points
- British savers have pulled £11.4bn from UK equity sectors since June 2016
- UK valuations are depressed relative to their own history
- There is no evidence that there is a crisis of confidence
While confidence is draining, investors are eyeing up equities with an underlying strength, and the perception that any weakened impact is due to the political context – not of certain companies’ own making.
Research from Aegon illustrates divided views among advisers on UK equities, with 14 per cent expecting the asset class to perform the worst, while 20 per cent expect it to perform the best over the next year.
Other advisers are at various viewpoints on the spectrum.
Everyone wants to know, sooner rather than later, who has turned out to be right or wrong on their UK equity moves since 2016.
Marcel Le Gouais is a freelance journalist
