Threadneedle's Brazier adds to 'unloved' UK domestics

Threadneedle's co-head of UK equities Simon Brazier has been buying into "unloved" UK domestic stocks in the view valuations are attractive compared to those with coveted emerging market exposure.

Brazier has been adding selectively to housebuilders, retailers, and pubs in his £1.2bn UK fund, taking advantage of undervalued opportunities in these sectors. Meanwhile he is predicting earnings growth of 17% from UK companies this year and dividend growth of 3.2% as confidence improves. "Following last year's impressive returns from companies geared into emerging market demand, the valuation differential between these stocks and unloved domestic businesses has become extreme. "We are finding some good opportunities among the latter group, while also continuing to hold some of th...