UK equity allocation hits lowest level since financial crisis on Brexit fears

The survey found global fund managers have cut their UK equity allocation from a 20% average underweight last month, to a current 36% average underweight. The results also show sterling is currently seen as undervalued by 20% of fund managers, the second highest reading on record, as the upcoming EU referendum continues to weigh on the UK currency. European equity quantitative strategist Manish Kabra said: "Investors identify Brexit as the biggest tail risk in the world, with global fund managers' allocations to UK equities dropping to the lowest levels in 7.5 years." However, 71% ...