UK Equities Offer Value Amid Global Uncertainty

The Merchants Trust continues its streak of 44 consecutive years of dividend growth by focusing on high-yielding large-cap companies. Gergel recently restructured his portfolio, exiting positions in Tate & Lyle and Unilever while increasing exposure to Sage Group, Hikma Pharmaceuticals, and Wolters Kluwer. He maintains that the UK economy holds its own against G7 peers, with valuations remaining suppressed despite solid corporate fundamentals.

This sentiment is echoed by Matthew Spencer at Orbis Investments, who has similarly increased his UK footprint. Beyond established names like Shell and Rolls Royce, Spencer is targeting growth in data-driven firms such as Experian and infrastructure giants like Balfour Beatty. While both managers acknowledge the push toward green energy, they argue that fossil fuel incumbents remain essential for current energy security and transitionary needs, justifying their continued presence in portfolios.