Valuations should ensure equities progress during H2

UK GROWTH

Many people have been surprised by the recent rally in UK equities as sentiment became gloomy towards the end of Q2.

Concerns over the impact government austerity measures would have on the outlook for growth as well as worries over the financial system saw equities fall. What has triggered the recent rally has been another strong corporate results season with the majority of companies beating expectations across most sectors. We were not surprised by this strong performance from the corporate sector and had been positioning our fund holdings accordingly for some time. This is especially true in the financial sector, where we have been overweight Lloyds, which we still consider to be attractive with...