KIC Shares Stock Outlook with Domestic Institutional Investors Entering the UK Market

[Asia Economy Reporter Minji Lee] Korea Investment Corporation (KIC) announced on the 4th that it held the 11th London International Financial Council meeting in an online video conference format, hosted by its London office.

At this council, Emmanuel Cau, Head of European Equity Strategy at Barclays Bank, gave a presentation titled "2020 European Equity Market Review and 2021 Outlook."

Director Cau stated, "This year’s stock market experienced the worst economic recession since the Great Depression, followed by the shortest bear market and then a record-breaking bull market," and predicted, "The boom will continue next year with a market driven by macro factors and pro-cyclical trends." He cited the visible economic recovery due to vaccine distribution, corporate earnings improvement, a gradual rise in bond yields, and continued capital flow into risk assets as grounds for his optimistic outlook.

By region, he expected capital to move from U.S. equities to European and emerging markets (EM), and the polarization between value stocks and growth stocks to ease.

After Barclays’ equity market outlook presentation, attendees shared the Bank of Korea’s economic forecast for next year and reviewed the business environment by sector, including banking, securities, and insurance.

Yang Changsoo, head of KIC’s London office and organizer of the event, said, "Since its launch in 2018, the London International Financial Council has established itself as a channel for sharing overseas investment information among Korea’s public and private financial institutions," adding, "We will continue to support the co-growth of domestic institutions in the region through the activation of the council in various ways."

Launched in February 2018 under KIC’s leadership, the London International Financial Council includes 24 Korean public and private investment institutions operating in the UK, expanding cooperation such as sharing overseas investment information and supporting the establishment of local networks.