This very brief piece is a follow-up from my e-mail on performance on Friday.
In my earlier note I referenced how unusual it has been to see the UK market outperform other global markets and that this likely temporary situation is almost exclusively down to the energy crisis caused by the war in Ukraine. In this article on the BBC website (see link below), Business Editor Simon Jack discusses how interest in the UK as a place to list companies has dramatically declined over the past few years and the reasons behind it.
https://www.bbc.co.uk/news/business-64833390
A key couple of sentences in the article are as follows:
“UK investors are also shunning UK listed companies. Over the past two decades, the percentage of UK pension fund assets invested in UK companies has fallen from over 40% to under 5%. They too prefer to do their shopping abroad.”
The purpose of highlighting this article is to reaffirm a widely accepted view that the UK’s recent outperformance is likely to be short-lived and that more globally diversified portfolios have better prospects when it comes to delivering consistent returns.
I hope you find the article interesting but, if you have any questions about this piece or any other finance related matter, please do not hesitate to get in touch.
Yours sincerely,
Graham Ponting CFP Chartered MCSI
Managing Partner
