UK Equities May Be Looking Up
May 11 – After a dismal 2020, the UK equity market appears to be getting more of a bounce in its step these days. And the future may be looking brighter, according to new research from Morningstar Indexes.
A confluence of local and global tailwinds such as the UK’s emergence from coronavirus lockdowns and reopening of the local economy and a strong corporate earnings season have contributed to a 9.4% (GBP) rise for the Morningstar UK Index in 2021 through the end of April, as compared to a 11.5% decline in 2020 and a 5.7% annual return over the last decade.
And taking a deeper look at the UK equity market through a valuation lens makes the UK equity market story even more compelling. According to the Morningstar Indexes Global Market Barometer, company-level valuations show the Morningstar UK Index currently trading below its fair value relative to global counterparts.
The Morningstar UK Index measures the performance of the UK’s equity markets, targeting the top 97% of UK stocks by market capitalization. View the latest fact sheet for more on the index. You can also download the recent paper from Dan Lefkovitz to dig into this topic in more detail and for more background on the Morningstar Global Equity Indexes.
To speak with Dan, contact Tim Benedict at 203-339-1912 or email@example.com.
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