Japan and Europe policymakers continuing to pursue a policy of quantitative easing (QE) means those equity markets are the most attractive for investors, according to Justin Onuekwusi, multi-asset fund manager at Legal & General Investment Management.
Mr Onuekwusi said the central bank policies of low interest rates and QE have helped to boost equity market returns.
He said there must be great uncertainty as to what will happen as central banks put interest rates up.
With this in mind he is focused on European and Japanese equities, as those economies continue to deploy quantitative easing, and are far from putting interest rates up.
The fund manager sees little value in the UK market, due to ongoing political uncertainty.
But Julian Chillingworth, chief investment officer at Rathbones Unit Trust Management, said UK equities have become good value.
Simon Edelsten, who runs the £170m Mid Wynd investment trust said in a global context the main growth themes he has identified for the next few years - automation, artificial intelligence, online businesses - have few quoted UK companies exposed.
He said: "Where we do find UK listed shares in sectors we like, we generally find them not offering such good value as stocks overseas."
Bill McQuaker, multi-asset fund manager at Fidelity, said UK equities are traditionally a defensive asset class, and with a Brexit transition agreement seemingly in place, it may be they start to perform better.
david.thorpe@ft.com
