We review our sector weightings post the Brexit vote to conclude to a) add selectively to domestic UK sectors: We upgrade non-London housebuilders to benchmark, while we stay underweight London-centric plays and UK REITs, especially office. We remain benchmark general retailing, purely on the basis of valuation (a near record 25% P/E discount to the UK market). Elsewhere, we upgrade UK life insurers to overweight from benchmark; b) remain benchmark European cyclicals; c) adjust weightings within defensives: We take the entire European utilities sector to underweight while add this money to big cap pharma.
FULL NOTE
FULL NOTE