Bank of America survey shows that investors are cutting their exposure to UK stocks at the fastest pace in over three years.

Bank of America's global fund manager survey shows that investors are reducing their exposure to UK stocks at the fastest pace in over three years. The survey indicates that the three-month decline in UK stock allocations is the largest since October 2022. "In November, bearish asset allocation is reflected in UK equities," wrote strategists including Michael Hartnett in the report. Despite the relatively strong performance of the UK's large stock index, the macroeconomic and political background continues to deter fund managers. Currently, the net underweight ratio of investors in UK stocks is 29%, up from 19% last month, making it the least favored asset class globally. UK stock allocations have dropped to the lowest since January 2024. Pessimism also extends into the next year, with only 3% of investors expecting the FTSE 100 index to outperform in 2026, the lowest proportion among major indices. Bank of America strategists say that based on the results of this survey, going long on UK benchmark indices while shorting emerging markets is seen as one of the main contrarian trades.