Managers look overseas as UK economy stagnates

Managers running UK-focused portfolios have turned to international stocks for returns as the UK's recovery continues to disappoint.

Figures released last week showed Britain’s economy grew just 0.5% in Q1, following a 0.5% contraction in Q4. The number undershot economists’ expectations of up to a 0.8% increase and prompted investors to continue favouring internationally exposed companies. Max King, strategist for the global asset allocation team at Investec, said the GDP figure was “disappointing” even if there was a slight bounce-back from the previous quarter. “Those who are heavily invested in the UK should use this as an opportunity to diversify internationally,” said King.  “Investors have too much ...