How the changing face of the FTSE is creating more 'valuation anomalies'

The growing influx of overseas investors into the London stockmarket is providing opportunities for UK multi-cap managers to find overlooked 'valuation anomalies' further down the market-cap spectrum.

According to data from the Office for National Statistics (ONS) showing the changing ownership structure of the FTSE All Share, the number of investors from the "rest of the world" has increased from 30% in 1998 to 54% at the end of December 2014. The ONS said the figure, which equates to £929bn, reflects the increasing internationalisation of the London stockmarket and the ease with which overseas residents can invest in UK-listed companies. Some 46% of this overseas investment in 2014 came from North America, followed by 26% from European investors. In contrast, the amount invested ...