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Talking Point: The outlook for UK companies

Talking Point: The outlook for UK companies

There are plenty of opportunities in UK companies, according to the guests on the latest edition of the FTAdviser Podcast.

This edition of the podcast, sponsored by Schroders, discussed the outlook for UK companies following Brexit and the coronavirus pandemic.

Paul Lamacraft, senior investment director at Schroders, pointed to the fact his company had recently launched the Schroders British Opportunities trust as a sign that it was optimistic about what was on offer in the UK market.

He said: "We see some fantastic opportunities in the earlier stage growth companies, but also established companies which have got an opportunity to expand and grow and seize upon the opportunity that now presents itself with some more clarity coming through from some of the issues we've faced recently in terms of Brexit and of Covid.

"So we are looking very positive about the domestic market now."

Lamacraft was joined on the podcast by Pieter Fourie, head of global equities at Sanlam, and Louise Kernohan, portfolio manager on the BNY Mellon UK Equity fund.

Kernohan said: "It's true when you look at the [UK] market as a whole over 25 per cent of the FTSE All Share benchmark is in commodities, banks and tobacco stocks which [...] are industries seen as legacy with individual structural challenges.

"But, at the risk of stating the obvious, the FTSE 350 has 350 companies in it and so no one dictates to you that you have to have that amount of your assets in the legacy industries.

"In fact there's plenty of companies in sectors that are dialed in to the increasing demand for healthcare, increasing digitisation in the world - all these trends which are set for the long term."

She cited the pharmaceutical sector as one example of an area where there were plenty of opportunities in the UK market.

To listen to the full podcast click play on the player above. FTAdviser's podcasts are also available on Apple Podcasts, Spotify, Stitcher and Acast.

damian.fantato@ft.com