FORWARD MOMENTUM IN UK ECONOMY UNDERPINS OUTLOOK FOR UK EQUITIES


In its annual St. George’s Day focus on the Best of British, Old Mutual Global Investors award-winning UK Equity team remains upbeat about the prospects for the UK economy, beyond the short term interest in the General Election.

The UK’s recovery is firmly established, with persistent growth in employment quarter after quarter.  Job vacancies recently hit an all-time high, up 20% year on year, suggesting this improvement in the labour market is set to continue.  As the recovery broadens, full-time jobs are increasing relative to part-time, hours worked are rising and there is evidence of some much anticipated wage growth at last.

‘Seven years on from the financial crisis, the healing process is on-going.’ commented Richard Buxton, head of UK Equities at OMGI.  ‘But it is clear that growing corporate sector confidence is being reflected in investment and job creation.  Consumption is not debt-fuelled as in the past, and should grow as incomes pick up.’

Whilst the UK stockmarket does not have the stimulus of Europe’s QE nor the scale of the Euro’s decline behind it, nevertheless UK companies are benefitting from the UK’s economic recovery.  We have seen good levels of dividend growth from many companies and anticipate that UK banks will increasingly grow their levels of dividends to shareholders.

We are encouraged that after years of ‘de-equitisation’ and a shrinking pool of companies in which to invest, during 2013/14 and into 2015 so far over 200 companies have listed on the UK market.  Primarily amongst small and medium-sized companies, we are delighted to be able to back more strongly-growing UK companies once again.

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OMGI’s UK Equities team is sixteen strong and offers dedicated funds focused on large, mid and small cap stocks, equity income, and long/short.

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Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £21 billion¹.  The team consists of 214 industry professionals, including a team of 51 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to:  www.omglobalinvestors.com

Old Mutual Wealth:

Old Mutual Wealth is a leading retail investment business in the UK and internationally that aims to help people secure their financial future.

It has an adviser and customer offering spanning: 

  • Financial advice via the Intrinsic network and independent financial advisers
  • Platform based wealth management products and services via Old Mutual Wealth in the UK and Old Mutual International globally
  • Asset management solutions via Old Mutual Global Investors 
  • Discretionary investment management via Quilter Cheviot

Old Mutual Wealth currently oversees £82.5 billion¹ in customer investments.

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 16 million customers across the world and has a total of £319.4 billion¹ assets under management.

¹ as at 31 December 2014