Skilled active investing ultimately comes down to people. ClearBridge’s UK equity team brings over 120 years of combined industry experience, with portfolio managers who have navigated multiple market cycles — not just the easy ones.
UK equities: change the narrative for the real story
Britain has never been short of pessimism. But if you look beyond the headlines, a different picture is emerging — one of resilience, global relevance and opportunity across UK equities.
The headlines are loud. The reality is more interesting.
Spend five minutes with the news and you’d think the UK economy is permanently stuck in reverse. Higher rates. Political noise. Broken Britain.
But that view misses what’s actually happening on the ground.
Look across the UK and you’ll see businesses investing, cities growing and companies adapting. Consumers are proving more resilient than expected. And while sentiment has lagged reality, fundamentals are quietly doing the heavy lifting.
This disconnect is exactly where long-term investors tend to find opportunity.
Three reasons we’re optimistic about UK equities
Reason 1
Stable income through the cycle
UK equities have long played a role in income-focused portfolios — and that role remains intact. UK-listed companies have demonstrated an ability to generate stable, sustainable income across market cycles, making them a compelling anchor within diversified portfolios.
Reason 2
Global diversification, hiding in plain sight
Investing in UK equities doesn’t mean taking a narrow bet on the UK economy. Around 75% of FTSE 100 revenues are generated overseas, giving investors access to global growth through internationally diversified businesses — often at valuations that look compelling relative to global peers. It’s global exposure, without having to leave the UK market.
Reason 3
Valuations that still look compelling
Despite improving fundamentals, UK equities continue to trade at a 30–40% discount to global peers across price-to-earnings.
That gap reflects sentiment more than substance. And for long-term investors, it continues to offer a margin of safety that’s increasingly difficult to find elsewhere.
Why Franklin Templeton for UK equities?
When you decide to invest in UK equities, how you invest matters just as much as where. At Franklin Templeton, UK equities are managed by ClearBridge—with a dedicated team that has a single focus: finding long-term value in UK-listed companies through disciplined, fundamental research.
This is active management by design — patient, selective and built to look beyond short-term noise.
Meet the ClearBridge UK equity team
An established team, built for the long term
A disciplined approach, refined over decades
The team’s investment process has evolved over almost four decades, remaining anchored to a few core principles:
- Focus on high-quality businesses
- Apply a strong valuation discipline
- Emphasise balance sheet strength, profitability and sustainable income
It’s not about chasing trends. It’s about consistent decision-making designed to create long-term value.
Away from the noise, by design
Based in Yorkshire, the UK equity team operates outside crowded investment hubs. Distance from the daily market echo chamber helps foster independent thought and long-term perspective — especially when sentiment is driving prices.
Being away from the noise creates space for reflection and disciplined decision-making.
Intentional investing with strong conviction
The ClearBridge UK equity team works closely, sharing ideas, challenging assumptions and testing investment cases. Research may be divided by market capitalisation, but thinking isn’t siloed.
Portfolio construction is built on continuous dialogue — where good ideas matter more than hierarchy, and conviction is shaped through debate.
Explore our UK equity range:
The team invests across the market-cap spectrum, managing both total return and income strategies. This breadth gives investors flexible access to UK opportunities — without compromising on philosophy or discipline.
FTF ClearBridge UK Equity Income Fund
Our flagship offering is a core UK holding focused on high quality, dividend paying companies. The portfolio invests in predominantly large cap equities and aims to generate an annual income higher than the FTSE All Share index.
FTF ClearBridge UK Mid Cap Fund
This is a high conviction portfolio of quality UK mid cap stocks, which provides a prudent exposure to the many high growth opportunities within the FTSE 250 index.
FTF ClearBridge UK Smaller Companies Fund
The Fund aims to grow in value by more than the Numis Smaller Companies ex- Investment Trusts Index over a three to five-year period after all fees and costs are deducted.
FTF ClearBridge UK Rising Dividends Fund
The Fund aims to increase in value through investment growth by more than the FTSE All-Share Index over periods of five years after all fees and costs are deducted.
FTF ClearBridge UK Managers' Focus Fund
The Fund aims to increase in value through investment growth by more than the FTSE All-Share Index over periods of five years after all fees and costs are deducted.
Still sceptical? Two more reasons to look again
Reason 4
A more resilient consumer — and improving tailwinds
Despite ongoing macro uncertainty, the UK consumer has held up better than many expected. Wage growth has remained strong, easing pressure on household budgets. At the same time, there are signs of improving sentiment— from greater job security to reduced debt concerns — point to a more supportive backdrop for consumption and growth.
Reason 5
Innovation — beyond the obvious names
The UK’s innovation story extends well beyond a handful of headline stocks. Significant investment in R&D and future-proofing is driving opportunity across sectors, particularly among small- and mid-cap companies challenging larger global players.
Insights from the ClearBridge UK equity team
UK Equities – frequently asked questions
UK equities are shares of companies listed on the London Stock Exchange. The UK market includes globally diversified businesses across sectors such as financial services, energy, healthcare, consumer goods and industrials. Investors gain exposure to these companies either directly or through professionally managed UK equity funds.
UK equities may offer a combination of dividend income, global revenue exposure, and valuation opportunities relative to other developed markets. The market’s sector composition differs from the US and broader global indices, which can provide diversification benefits within multi-asset portfolios.
As with all equity investments, capital is at risk.
For wealth managers, DFMs and advisers, UK equities may serve as:
- A core domestic equity allocation
- An income-generating sleeve
- A valuation-driven satellite position
- A diversifier to US growth exposure
- A sterling-denominated allocation for UK clients
Position sizing depends on mandate objectives and risk tolerance.
The UK market often exhibits sector rotation and valuation dispersion, which can create opportunities for active stock selection. Active managers may seek to identify mispriced companies, assess dividend sustainability, and manage downside risk relative to a benchmark.
Outperformance is not guaranteed.
The UK market has lower exposure to mega-cap technology and higher exposure to financials, energy and healthcare. This structural difference can lead to differentiated performance patterns and may support diversification in portfolios that are heavily weighted toward US growth stocks.
The UK market has historically been associated with relatively strong dividend yields. Many large UK-listed companies distribute a portion of earnings to shareholders, making UK equities a common component of income-focused strategies.
Dividend payments are not guaranteed and may fall as well as rise.
Key risks include:
- Market and economic volatility
- Political and regulatory changes
- Sector concentration risk
- Currency movements (for non-GBP investors)
- Liquidity risk in smaller companies
UK equities should be assessed within a broader portfolio risk framework.
Footnotes
- Source: Consumer Price Index as of 31/12/2025.
- Source: Morningstar as of 31/01/2026.
- Source: Bloomberg as of 30/01/2026.
- Source: Bloomberg as of 31/01/2026.
- Lastest data available to end of 2024. Source: OECD (Organisation for Economic Co-operation & Development) as of 31/01/2026.
Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.