BofAML survey: Global investors plough back into UK equities

Allocation to UK equities reaches four-year high

Global fund managers’ allocation to UK equities jumped to a four-year high to near their long-term average pre-Brexit referendum weighting as sentiment towards the UK begins to turn, according to Bank of America Merrill Lynch (BofAML).

Overall, the US investment bank's latest fund manager survey for December showed global money managers are at their most bullish since April 2018, as they pile back into equities. Meanwhile, cash weightings continue to run at six-and-a-half-year lows. Investors' allocation to UK stocks jumped eight percentage points to a net 13% underweight, BofAML's survey showed. This was the biggest allocation since late 2015 and just shy of the 10% underweight average pre-2016. Post-2016, the average allocation has been 28% underweight. "Investors have been closing their structural UK underweight ...