After years of outflows and dwindling investor interest, the UK equity market may be about to undergo significant reform. Meanwhile, UK shares continue to trade at a steep discount to their international peers at a time when market leadership is highly concentrated in the US and, to a lesser extent, in Europe. Alongside signs of a revival in M&A activity, attractive dividend yields and with relative calm restored to UK politics after the post-Brexit vote turbulence, we believe there is life in the London market yet.
UK Stocks Remain Unloved Versus International Peers
As at 31 March 2024
Source: FactSet
Notes
1. February’s Bank of America Global Fund Manager survey
2. Deutsche Bank, ‘A Macro Guide to the Magnificent Seven’
3. www.gov.uk/government/statistics/annual-savings-statistics-2023/commentary-for-annual-savings-statistics-june-2023
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Published on 8 April 2024.
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