Global equity ITs shun UK for emerging markets

Global equity investment trusts are reducing their allocations to the UK market in favour of emerging markets and specialist sectors such as private equity, AIC data shows.

The average manager in the IMA Global Growth sector has slashed UK exposure by 10% over five years, from 42% to 32%, according to the AIC. While the UK still accounts for the majority of assets, some managers have gone further and are not underweight the UK. Exposure to Japan has also halved, while North America and the Pacific region have benefitted from the rotation. The £73m Cayenne Trust sits in the Global Growth sector and can also invest in other trusts in the peer group. Co-manager James Hart has reduced its UK equity exposure from 71% to 29% and shifted assets into the pr...