The FSA Spy market buzz – 2 June 2023
Buffered funds come out to play, Singapore and Shanghai connect, Franklin’s buying again, under and over estimating technology, US debt ceiling melodrama, Evergrande’s non-payment and much more.
Funds invested in UK equities have struggled since British voters chose to leave the European Union in a referendum on 23 June 2016.
The average cumulative return of UK equity funds available to Hong Kong and Singapore investors is only 3.88%, and the FTSE All Share index has made a cumulative return of just 12.13%, well-below the performance of the MSCI World index (35.11%), according to FE Analytics data.
Whether blame should be attributed to the referendum decision itself or the prolonged failure to agree a deal to exit, the performance of UK equities has been sluggish.
The terms of Brexit, of course, still haven’t been finalised, so investors are likely to remain wary about the asset class. However, the UK equity sector contains many well-established funds run by highly respected managers.
FSA asked Luke Ng, senior vice president of research at FE Analytics, to compare two UK equity products that have these qualities: the Blackrock GF United Kingdom Fund and the Threadneedle UK Select Fund.
Part of the Mark Allen Group.