AXA's Thomas: UK equities are cheap, but will stay cheap

Nigel Thomas, manager of the £2.8bn AXA Framlington UK Select Opportunities fund, has said UK equities are cheap, but have little scope to rise in the current environment.

Thomas referred to his old investment mantra that "things will not necessarily get better or worse, but will become different", but said politicians and ‘eurocrats' remained a stain on the financial markets of the world. In the UK, Thomas said pitting the political will to reduce the debt-to-GDP ratio against a context of slowing global growth will make the outlook for equities uncertain. "The prospects for UK companies in this low GDP growth environment are many and varied. In my view, UK equities are cheap, but will remain cheap," Thomas said. In this context, the managers is opt...