UK equities: Tacking into the headwinds

While the FTSE all-share index is in positive territory for the year to the end of May, it has, as many fund managers predicted at the start of 2014, been a slow grind upwards with reversals of momentum along the way and considerable sector rotation. This is perhaps understandable given that UK company valuations on average look fuller now than 12 months ago, with many examples of companies re-rating in anticipation of earnings growth that has broadly yet to come through.   Funds exposed to companies with more cyclical UK domestic earnings exposure have had a tougher time in 2014 havi...