Over the next 10 years UK equities will outperform UK government bonds by 3.75%, according to research by Barclays Global Investors (BGI). But other institutional investors are not so convinced.
Hadyn Davies, chief economist at BGI, says: “BGI’s view is that the UK equity risk premium will be 3.75% over the next 10 years.”
Davies admits that part of the outperformance is due to the low equity valuations. “When we started the report six months ago, we allowed for some repricing in UK equi