Global and UK investors selling out of UK equities provide scope for future gains, argues Richard Buxton, manager of the Old Mutual UK Alpha Fund.
Outflows from UK equity funds have persisted for four years. The Bank of America Merrill Lynch survey of global investors shows they have rarely been so underweight in the UK market. In part, it is good to see UK investors overcoming their traditional home bias to capture more exposure to great US, European and Asian companies. And yet, the popular rush into global funds has not only created opportunities in cheap UK shares, but is not without risk itself…
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