Tapping into the diversity of UK equities
The UK equity market is one of the most diverse markets globally, providing access to attractive companies with broad international exposure, as well as strong domestically-focused stocks.
UK expertise you can count on
Capitalising on these opportunities requires dedicated expertise. Our experienced UK equity investors select attractive investments using a distinctive stock selection process that has been fine tuned for over three decades.
Why invest in UK equities?
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1. Attractive valuations
The UK equity market presents a compelling valuation opportunity.
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2. Compelling returns to shareholders
UK companies are returning cash to shareholders through dividend and buyback yield
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3. An improving macroeconomic outlook
The market is beginning to recognise the UK’s economic stability
Quality UK stocks at discount prices
The UK stock market has been trading at substantial valuation discounts for several years, against both its own historical averages and other developed markets. Despite their lower valuations, UK equities exhibit a return on equity comparable to that of their European and global counterparts – a key indicator of company quality. This valuation opportunity has not gone unnoticed in the corporate world, with a pronounced increase in M&A activity and private equity buyouts, since the turn of the year.
M&A source: Bloomberg, based on total deal volume as at 20 September 2024.
Increasing buybacks reflect strong UK corporate confidence
UK companies are increasingly buying back their own stocks compared to peers in other equity markets, reflecting their leaderships’ strong confidence in their investment cases. These buybacks are helping to return significant value to shareholders.
Positive economic indicators are boosting the UK outlook
UK GDP has exceeded expectations in the first two quarters of 2024 and underlying economic data is showing positive signs: composite PMIs (Purchasing Managers’ Indexes) remain in expansionary territory, consumers have accumulated savings post-pandemic, and real wages are growing. All these factors are contributing to a growing wave of positivity.
UK equity solutions for every investor
Whether you’re looking for a fund to sit at the core of your portfolio, or want to add diversification via an unconstrained, active extension or small cap strategy, our UK equity OEICs and investment trusts provide a comprehensive range of solutions, spanning the full risk-return spectrum.
UK equities in focus
Get in touch with our team.
Contact us for more information on our fund range, or to speak to your local Client Adviser.
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This is a marketing communication. The views contained herein are not to be taken as advice or a recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. The value of investments and the income from them may fluctuate in accordance with market conditions and investors may not get back the full amount invested. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000. This communication is issued in the UK by JPMorgan Asset Management (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.
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