Managers voice concerns over UK equity valuation levels

UK managers have called into question domestic equity valuations, saying recent landmark events should act as a warning sign for investors.

Simon Brazier, head of UK equities at Threadneedle, said he has taken a cautious view of recent milestones which have bolstered investor sentiment, such as the government’s disposal of part of its stake in Lloyds Banking Group. The manager told investors this month many market sectors are beginning to look fully valued. “For the past two to three years I have been positive on UK equities, but there is no doubt valuations are starting to look relatively full in certain areas. We are not finding the opportunities we once did,” he said. Other UK equity investors have welcomed the Lloy...