Despite the FTSE 100 underperforming against most of its peers over the past decade, the UK remains the largest single country exposure for many fund buyers and retail clients.
But many investors are cooling on the UK, with £5.7bn pulled from UK funds in the first half of 2022 as seven straight years of outflows continued.
The opinions of wealth managers vary widely on this topic, with some commenting that as clients economic goals are in the UK, this is the appropriate market to be overweight.
Others take the view that clients are likely to already be heavily exposed to the UK economy through their house and career, so a more global equity portfolio is appropriate.
Then there is the consideration that UK equity exposure leaves clients predominantly exposed to value, rather than growth equities, hampering efforts to construct a diversified equity exposure.
But which do you prefer?
