As the referendum for Scottish independence looms, negativity towards U.K. stocks has deepened, so much so that Bank of America Merrill Lynch has branded the U.K the world’s “least popular region” among asset allocators.
Fund managers are not only underweight U.K. stocks ahead of Thursday’s vote that will decide Scotland’s future, long term it is the region global investors want to stay away from the most, the bank said.
Some 16 percent of the investors polled by the bank for its monthly fund manager survey, said they were underweight U.K. equities. Looking ahead, 14 percent of the group said the U.K. is the region they most want to underweight in the coming 12 months.
Furthermore, a fifth of the investors surveyed by the bank also says the U.K. has the least favorable profit outlook, up from 12 percent last month.