Large caps offer good opportunities
Larger cap companies offer particularly attractive opportunities for those looking to invest in UK equities, according to Mark Barnett, manager of the Invesco Perpetual UK Strategic Income Fund.
Barnett said that large caps are a good investment because they are usually geographically diversified companies and are not dependent on the UK economy to drive earnings.
“On a medium-term view, we believe strongly that these businesses are very much undervalued and present very good opportunities for medium-term investors. This is where we are positioning the funds and that is where we would argue that the greatest opportunities lie,” Barnett added.
With regards to the UK economy, Barnett said that although it is going to hit a rough patch, he believes that the MPC will cut rates, but at a more moderate pace than the Federal Reserve.