Rate rises hit UK equity

Saunders, who runs the £47.66m fund alongside Max King, said the increase to 5pc was a deterrent to investing further in the UK, although it will not mean the portfolio reduces its weighting. “The rise was not helpful as there is further scope for it to rise again, and equity markets tend to struggle as rates rise so it represents headwinds for UK equities. “But we already have low UK exposure, currently at 32pc, so I doubt we will cut it a lot further. We are remaining constructive about equity markets and have around 90pc in quoted equities, with 5pc in private equities.” The top quart...