Invesco: Beyond Brexit: sourcing sustainable income and alpha opportunities

21 February 2019 | Mark Barnett, Head of UK Equities, Henley Investment Centre

Exposure to attractively priced UK earnings remains significant: Mark's portfolios have more than twice the exposure to UK sourced revenues as the FTSE All-Share index. Yet global investors are taking an extremely pessimistic view of the future for UK revenues, failing to recognise the underlying health of the UK economy.

A combination of factors such as the forecasted increase in government spending and employment growth, set against the low valuations across a number of sectors makes UK equities an attractive place for the long-term investor.

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• Economic indicators, robust corporate data and attractive valuations across a number of sectors make the UK equity market, to my mind, an attractive place for the long-term investor
• Extended negativity priced-in to UK sourced revenues presents a value opportunity in domestically orientated stocks
• Potential catalysts for a reassessment of the UK equity market’s prospects include clarity on Brexit and wider political stability
• My consistent, long-term investment approach seeks to deliver sustainable growing dividend income and capital growth despite volatile market conditions.
• Portfolios positioned to exploit UK domestic value and selective international growth opportunities. I retain a preference for uncorrelated income and highly cash generative stocks

Investment risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.