Home bias remains an issue among wealth managers

Follows UK investors' heavy weighting towards UK assets

There is strong evidence to suggest UK investors have traditionally skewed their portfolios to locally listed equities, and that they do so because they connect familiarity with low risk.

As professional investors know, the UK accounts for just 3.5% of the world economy, while its stockmarket represents just 5.8% of the MSCI All Countries World index. As a whole, the UK accounts for less than 1% of the world's population. Yet despite this, UK investors still typically have a heavy bias towards UK assets.  It is a common misconception that it is only personal investors who have traditionally displayed a home bias. A large number of wealth managers also prefer this method of investing, with some allocating more than 40% of a client's equity exposure to the UK. The Wea...