- ASI UK Ethical Equity has a bias to mid-caps so could benefit from a domestic recovery
- The fund could appeal to growth investors who want to invest via an ethical approach
- The fund goes through periods of volatility though has made good returns over the long term
UK equities lagged other stock markets last year for reasons including the domestic market’s relatively low proportion of technology companies, Brexit uncertainty and the impact of Covid-19. The situation is different this year, with a lock down over the first four months of this year and a vaccination programme helping to bring Covid-19 under control. And this has been reflected by a steady rise in UK stock markets since November.
But despite a strong recovery for UK equities, some investors and analysts believe that UK equities are still relatively cheap. For example, global firms listed in the UK are trading at price-to-earnings discounts relative to foreign competitors.