Disclaimer
Disclosure – Non-Independent Marketing Communication
This is a non-independent marketing communication commissioned by Schroder UK Mid Cap. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.
In a speech to the House of Commons in 1941, Winston Churchill candidly observed: “The British nation is unique in this respect: they are the only people who like to be told how bad things are, who like to be told the worst…but when you go to other countries, [they urge] that we should be careful not to indulge in too-gloomy forecasts.”
It would be fair to say that UK equities have been shrouded in gloom for some time, with an unprecedented outflow of retail and institutional money alike. But, while UK investors may have largely eschewed their home market, others have been noticeably more upbeat on the outlook for UK plc. The last few years have seen corporate and private equity buyers snapping up UK public companies at bargain prices and the proportion of overseas investors holding UK shares recently hit a record high of nearly 60%, according to the ONS.
This begs the question: are UK investors missing a trick? Given the current valuations on offer and the opportunity for a sustained recovery in UK equities, the answer is: quite possibly. As we will explore in more detail, this may well prove an opportune time for investors to reconsider their exposure to UK equities.
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