Sitting firmly in the global value category the UK offers intriguing exposure to financial, cyclical, and defensive positions at historically low relative valuations. These factors also tend to perform well during mid-cycle expansions. Political uncertainty and a habit of aggressive covid lockdowns have turned many investors away from the relatively smaller equity market. Brexit uncertainty is still an issue which will need to be watched given its effect on foreign trade which makes up a large portion of the UK's GDP. Additionally, the Bank of England (BoE) and their lack of concrete forward guidance has embedded unnecessary volatility in the bond and stock markets. Positive policy and government activity would support greater upside for the region, but to start the year, we prefer foreign developed exposure in the euro area over a more concentrated UK allocation.