Deep Dive: Multi-asset philosophy sees home bias as a weakness

Just 4% of IPOs are on LSE

Sunil Krishnan, head of multi-asset funds at Aviva, dives into UK equities.

One of the conundrums of recent years has been the poor performance of UK equities compared to global equity markets. Serial underperformance in the post-Global Financial Crisis era had been attributed to various sources - a more value-biased composition, the absence of US-style tech giants, the shrinking of defined-benefit allocations to the FTSE - all of these have been cited by the prosecution as evidence. Even our own multi-asset philosophy sees home bias as a weakness, limiting clients' opportunities compared to a more agnostic global approach. Yet with the emergence from the pandem...