The UK remains out of favour among global investors and, with domestic fund flows retreating, we have been taking this opportunity to add to UK equities as sentiment seems to have reached extreme levels.
Valuations are attractive having de-rated relative to other regions, with many leading UK companies now looking undervalued in absolute terms and excellent value in relative terms. Brexit Blog: FCA consults further on no-deal preparations Take Lloyds, for example, it trades on 7.5x price-to-earnings for 2019, whereas Belgium's KBC commands a 10.5x multiple. Like most investors we do not know how Brexit is going to pan out, but the removal of the uncertainty has the potential to lessen this price discount, causing UK assets to perform better relative to other countries. In additio...
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