LGIM's Launder: Why we have broadened our 'technology' definition

Choices in sector have narrowed

The horizons for UK economic growth are currently impeded by ongoing uncertainty about the shape and outcome of Brexit negotiations. As a result, investors have been increasingly concerned about the UK equity market.

The FTSE All-Share index has been flat since May, after a near 7% rise in the beginning of the year. A spectrum of factors have played a role in this plateau - from a weakened UK government following the election to North Korea testing missiles and nuclear warheads - but investors are equating the UK economy to the UK equity market and concluding growth will be hard to find. With 72% of FTSE 350 earnings generated overseas and with the global economy showing stronger growth - particularly in Europe, China and the US - we see plenty of scope for growth opportunities in the UK equity ma...