UK equity outflows have been called a “damning indictment” of the perception of Britain by markets.
Head of research at Peel Hunt, Charles Hall, said outflows in UK equities was a structural issue as he shared a graph showing there was just one month of inflows over the past 47 months.
In a post on Linkedin, he said: “Anyone who says this isn’t structural needs to think again.
“If the government wants a thriving equity capital market that supports growth companies then it needs to take urgent action.
“This matters to everyone in the UK, not just the City. Pension reform, Isa reform, stamp duty reform are essential. We can have the best performing market outside the US, but we need change.”
In response to the stark figures, David Belle, founder and trader at Fink Money, agreed with Hall that the government “urgently” needs to change the perception of the UK for investments, partly by not being “punitive on tax”.
Belle said: “The UK is haemorrhaging investor sentiment. UK equity fund outflows in 47 of 48 months is a damning indictment of this country’s perception by markets. It’s another sign of Broken Britain.”
Rob Mansfield, a financial adviser with Rootes Wealth Management, said the government should force pension funds into “buying patriotically”.
He said: “It will take a long time but rather than bully pension schemes and mess around with Isa rules, the government should focus on British entrepreneurship and encourage long term ownership in the UK.
“Too many companies have been sold off to overseas buyers.”
While Wes Wilkes, CEO of IronMarket Wealth, said a radical rethink was needed to reverse the trend of outflows.
He said: “More people have left UK equities than Brits fleeing a rainy bank holiday, but at least they come back when the sun shines.
“To stem this tide would require a radical rethink of the current government’s plans, policies and intentions to make the UK an attractive place to invest, deploy capital and grow. And that seems a long way off right now.”
Thanks to the Newspage community for sharing their thoughts with FTAdviser.
tara.o’connor@ft.com
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