(Alliance News) - The UK equity market is poised for a better time in 2023, after withstanding numerous shocks in the past year, according to the manager of Edinburgh Investment Trust PLC.
The FTSE 250-listed company, which dates back to 1889, invests in a "high-conviction" portfolio of 40 to 50 UK equities. Its shares were up 1.8% at 633.00 pence on Wednesday afternoon but are down 1.9% in 2022 so far.
Last month, Edinburgh Investment Trust reported that net asset value per share fell by 9.9% to 618.85p on September 30, the end of its first half, from 686.69p on March 31.
In an outlook released on Wednesday, James de Uphaugh, the trust's manager, noted that markets started 2022 with central banks still describing inflation as 'transitory' and are ending it with interest rate hikes not seen in over a decade. Despite this, London share prices have remained firm.
The FTSE 100 was up 1.3% on the day Wednesday afternoon and now is down just 0.6% in the year to date.
"The UK equity market has had a subdued period since the Brexit vote in 2016 and UK equity flows have been persistently negative since, yet 2022 saw a stabilisation as the quality and low valuation came to the fore," remarked De Uphaugh.
"Markets are anticipatory and, if we are right that the economic news becomes less bad, then we are in the foothills of a renaissance of UK equities."
By Tom Waite, Alliance News editor
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Edinburgh Investment Trust PLC (EDIN)