benchmarking against the UK STock market is a high-risk strategy, says edinburgh's Waugh
The UK stock market has become so highly concentrated that benchmarking against it is a high-risk strategy, according to Edinburgh Fund Managers. For that reason tracker funds and closet trackers will struggle this decade, according to Robert Waugh, head of UK equities at Edinburgh. Waugh said if tracking the All Share index today, 53%, or more than half the investment would be concentrated into four sectors. The largest, representing 18%, is banks. Although these companies are not currently expensive, said Waugh, there are concerns about bad debts given there have already been a numb...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes