Following three successive years of record outflows from UK equity funds and no end in sight, it feels easy to conclude that the world has given up on British shares. The cumulative effect on confidence of Brexit wrangles, Covid chaos and a mini-Budget calamity provides plenty of reasons why.
However, at odds with this narrative is the fact that the fund managers that really matter (those that are the best in the world at their jobs) are incredibly keen on the prospects of many British companies.
A year ago, financial publisher Citywire began to rate companies based on their popularity with the world’s best investors, who represent roughly the top 3 per cent of 10,000 fund managers monitored. Each month, around 6,000 out of more than 56,000 global listed companies qualify for an “Elite Companies” rating, reflecting a holding by one or more of these elite investors. Only the most popular 10 per cent of the 6,000 companies are awarded a top AAA Elite Companies rating.