American investors have channelled more than $15 billion into UK shares this year, outpacing flows into other overseas markets and offering a boost to the London Stock Exchange, according to research reported by the Sunday Times.
The FTSE 100 and All-Share indices have hit record highs, with Schroders suggesting that US demand reflects the relative value of London-listed companies, even after recent gains.
Data from the US Treasury showed investors steering clear of continental Europe, while Calastone found domestic buyers remained cautious.
Insurance chiefs at Aviva and Legal & General pointed to renewed international appetite, citing Britain’s stable regulatory environment. Analysts noted the shift comes as falling interest rates prompt global investors to move money out of cash.