Advisers are shunning UK equities and opting for global opportunities in the current market climate.
Over 60% of advisers at the February Unique Boutiques Conferences intend to increase client exposure to global equities in the next 12 months.
The survey follows the January IMA statistics, which showed the Global Growth sector attracted £154m inflows last month, despite overall equity outflows of £867m. UK All Companies was the hardest hit, with £439m outflows.
Christopher Metcalfe, manager of the top performing UK All Companies fund Newton Income, says expectations of sterling depreciation will only add to the overseas attraction.
“The IMA statistics were no surprise, overall it is a tough time for the UK and UK All Companies, and it is clear people want to put more money in global funds,” he says. “I would say that this is going to be a trend that will continue for a while yet.”
However, while Informed Choice joint managing director Martin Bamford says he has seen increased interest in global opportunities, he says the UK will still dominate investor thinking.
“The majority of investors will have a UK bias. It’s only natural because this is the market they are used to and feel most comfortable investing in,” he says.
“The message is to not panic and ride it out. Investors do have a long term strategy and in five or 10 years time this (current volatility) may just seem like a little blip.”
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