Advisers fear investors over-exposed to UK equities

Nine out of ten advisers warn investors are over-exposed to UK equities and could be hit in the coming months as the current market rally starts to falter, according to research by Ignis Asset Management.

Only 9% of 180 advisers questioned in late August said current allocation levels were appropriate, while almost half (47%) said investors were ‘definitely' over-exposed to UK equities and 42% felt they were ‘probably' over-exposed. A recent Professional Adviser panel survey on 10 September found the majority (41%) would allocate 30-40% of a client's portfolio to UK equities with 24% advising 20-30%. Advisers' concern for investors' high UK equity weighting comes as nearly 60% of respondents say the current rally is not evidence of a bull market. Despite the FTSE hitting a year high...