North America, Europe and China increase investment in UK shares
Overseas investors have increased their holdings of the London market’s blue chip shares to two thirds of the total, according to new analysis.
The percentage of foreign ownership of the FTSE 100 has risen from 58% in 2013 and 64% in 2019 to 66% at the start of 2021, with UK investors owning the other 34%.
By far the largest holdings from abroad are from US investors, which own 28% of London’s blue chips, according to research of share registers by Orient Capital, of which more than half is held by US mutual funds.
Including Canada in the equation, North American mutual funds now own £1 in every £6 of UK shares, up from just £1 in £9 in 2013.
This makes North American funds the largest shareholders in the FTSE 100, bigger even than British unit trusts, which now own £1 in every £7, according to the research.
UK pension funds own just 2%, following a steep decline from 8% over the past eight years, while overseas pension funds have dropped their stake from 10% to 7%.
“This is partly due to international diversification as UK pension assets have swapped domestic for overseas holdings, partly because liquidity rules have pushed pension funds into more fixed income assets and partly because of the increasing interest pension funds have shown in alternative assets like infrastructure whose long time-horizons match pension fund liabilities,” said Alison Owers, Orient’s chief executive.
European investors have increased their LSE holdings the most in the two-year period, across both institutional and retail shareholders. Europeans now claim a 19% stake, up from 15% in 2019.
Investors from China, especially public corporations, have also taken more of a stake in British companies, with holdings more than doubled from 0.7% in 2019 to 1.7% in 2021.
Owers added: “The UK stock market, in common with leading stock markets around the world, is dominated by big multinationals whose operations span every continent and compete with global peers, wherever they happen to be listed,”
“There is therefore no logic for investors only to consider companies that happen to be listed at home,” she said.
In terms of sectors, foreign investors seemed to have taken the greatest interest in the FTSE-listed mining companies, followed by healthcare and consumer goods companies.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/951572/north-america-europe-and-china-increase-investment-in-uk-shares-951572.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper -
Bioavailable Copper
destroys
pathogens and gives you more
energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans
out
toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification,
mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter
radiation by 96%! (See Video)
