Avellemy's Kosava backs diversified approach to UK equities over medium term

Allocation of between 12% and 33%

The outlook for UK equities has become increasingly positive following a torrid few years, according to Avellemy’s Alena Kosava, who believes cyclicality and attractive valuations are likely to remain in place over the medium term.

As such, the head of collectives said the firm's model range holds an allocation of between 12% and 33%, dependent on risk grade. "The oil sector continues to be a beneficiary of continued economic reopening in 2022 and, coupled with attractive valuations - particularly relative to the US - [this] has been positive, although remains balanced by slowing growth, tighter monetary and fiscal conditions, and volatile political developments," she explained. She added that the composition of the firm's UK exposure is "reasonably well diversified", with holdings spread across income funds, co...