Tuesday 20 July 2021 3:04 pm

UK bias causing British investors to miss out on potential gains

64 per cent of investors with at least £60,000 in investible assets have more than a quarter of their portfolio invested in the UK

UK investors are biased toward British shares despite London-based indices posting persistent long-term underperformance, according to new research.

Figures from Quilter shows 64 per cent of investors with at least £60,000 in investible assets have more than a quarter of their portfolio invested in the UK.

The research highlights the scale of potential returns British investors are missing out on if they fail to reallocate their portfolio.

In 2020, the UK was the worst performing major equity market. British shares account for just 3.67 per cent of the MSCI’s ACWI index, which tracks global markets.

The US accounts for 58.67 per cent of the index.

Danny Knight, investment expert at Quilter Investors, said: “Investors need to be careful they aren’t holding too much with just one region, even if is your own country.”

“While the UK does look attractive as a result of the vaccine rollout, long-term structural issues remain, so investors would be prudent to take advantage of tactical opportunities.”

Over a quarter of investors do not know where their money is invested, according Quilter.