Where is the value in UK financials?

While many stocks within financials look fully valued, Alexandra Jackson and Jo Rands are turning to a specialist financial group.

Many UK financial companies (excluding banks) have seen their share prices run a long way over the past few years in what have generally been solid years for British asset prices. Take a look at some of the listed asset managers or real estate names who have enjoyed the quantitative easing-fuelled boom. A lot are fully valued now, and few could be considered recovery plays. The outlook is less certain from here as the US Federal Reserve and Bank of England prepare to tighten monetary policy. For European financials the macro outlook has not been supportive. There are some positive ...