Recent analysis has revealed that foreign investors currently own a majority of UK shares.
The study showed that investors from outside the United Kingdom are in possession of 66 per cent of all UK-listed shares, a two per cent increase from just two years ago, in 2019, when they owned 64 per cent. The analysis undertaken on the London market indicates a steeper decline in domestic holdings retained by British shareholders.
European investors have shown the greatest increase in holdings in enterprises quoted on London’s Stock Exchange since 2019, ahead of investors based in the US and ahead of an increasing amount of interest from funds based in China.
Eight years ago, British pension funds possessed eight per cent of London listings by value, but since 2013, this figure has dropped significantly. British pension funds presently own a mere two per cent of the London stock market after experiencing a steep decline recently.
The London Stock Exchange analysis confirmed that US investors are now the biggest holders – particularly US mutual funds, which currently own more UK shares than those held by the UK’s unit trusts.
Foreign investors have showed most interest in UK-listed consumer goods, mining and healthcare companies. As investors from the UK look further afield for profitable opportunities in order to maximise the advantages of a diversified portfolio, foreign investors are doing the same on the London market.
UK consumers seeking investment advice in Chester can gain assistance from professional wealth managers, who are able to create investment portfolios that are diverse, balancing both risk and return.