Simon Brazier, head of UK equities at Threadneedle Investments, says investors and global corporates alike are beginning to take advantage of UK companies' exposure to worldwide themes.
Over the one-year period to the end of August, UK equities have returned 18.9%, and more than doubled (in total returns) from the market lows reached in March 2009. Meanwhile, while there have been recent signs of improvement, UK GDP still languishes over 3% below its cyclical peak in 2008, as the UK government maintains a tight fiscal policy in line with its stated desire to reduce government debt. One of the major factors behind the lack of correlation between the UK market and the domestic economy, is the exposure of UK-listed companies to the global economy. Around 75% of UK co...
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