Equities – what is the right approach for you?

For the past decade, investors have been slowly removing so-called “hometown bias” from their equity portfolios – moving away from predominantly local investments to a more global portfolio. 

In particular, this has been a growing trend in the UK defined benefit (DB) pension market.

So what lessons can be learned from this shift in approach? Our latest briefing note examines the key drivers of returns in equity markets, to provide investors looking to create equity portfolios today with the information they need to make the right choices.

Our research shows the volatility of regional and sectoral equity markets, and details the pitfalls of being too closely tied to the UK and it's traditional sectors. The briefing note also explores the growing influence of sustainability and ESG issues on investment decisions, and lays out what considerations investors need to make in order to successfully construct the best equity portfolio for 2022 and beyond.