Behind the Screens: Is the UK hiding its light under a bushel?
"It's really difficult to go through periods where the market just isn't being logical, but it makes the job even more interesting because there are more and more opportunities out there. Like I said, there has been a four fold increase in the number of companies sitting at a relative discount to their long term average - that means more opportunity for us."
In recent years, UK equities have been no stranger to sitting at a discount relative to other developed markets, however as that valuation gap continues to grow, what will be a trigger point for investors to return to UK equity markets?
This week Simon Moon, Co-Manager of the A-Rated Unicorn UK Income and Responsible A-Rated Unicorn Ethical UK Income funds, joined Jock Glover to discuss why uncertainty is one of the largest factors weighing against smaller companies in the UK, the potential trigger points that may start to build appetite for the market, and why the narrative attributed to UK equities is actually widening their opportunity set.
Listen to the Behind the Screens on your favourite platform here, or listen below.
Don't have time to listen to the full episode, jump to your favourite part:
01:20 - What do you see as the opportunities in putting money to work in the UK?
04:35 - What would be the trigger for investors to come back to the UK?
10:50 - How do you split your time during the day?
13:10 - Do you find themes that come through in the portfolios?
14:15 - What keeps you up at night?
15:40 - An interesting statistic from the week
This was recorded on Tuesday 26th September 2023. This podcast is only aimed at professional advisers and regulated firms and should not be passed on to or relied upon by any other persons. It is not intended for retail investors, who should obtain professional or specialist advice before taking, or refraining from, any action on the basis of the podcast, remembering past performance is not an indication of future performance. It is published by, and remains the copyright of, Square Mile Investment Consulting and Research Ltd. Square Mile makes no warranties or representations regarding the accuracy or completeness of the information contained herein. This podcast represents the views and forecasts of SM at the date of issue and may be subject to change without reference or notification to you. Nothing in this podcast shall be deemed to constitute a regulated activity or an invitation or inducement to engage in investment activity and it is not a recommendation to buy or sell any funds or investments that are mentioned during this podcast.