Growing with the flow

With fund flows recently seeing a recovery, the trend in UK stock markets has seen home investors shifting their bias into emerging markets. Is this just a drop in the ocean or the start of torrential investment downpour?

There is something atypical about the recent stock market recovery as far as fund flows go. Evidence is emerging that UK investors’ home bias is experiencing a shift as the sector of their investment choice in the last six months has been emerging markets. What is the reason behind this nascent trend? Is it something that can last over the longer term or is it just a temporary phenomenon? UK investors have tended to prefer their home market over overseas on account of familiarity. They are relatively comfortable investing in a local firm they know about or have heard of compared with a c...