UBS Equity Preference List UK 2026 08 18

18 August 2026, 07:54 UTC Chief Investment Office GWM Investment Research

The United Kingdom EPL is a list of our highest conviction UK stocks selected across CIO’s sector and thematic preference lists (EPLs). Achille Monnet UBS Switzerland AG Overall view: We see UK equities as well supported by reasonable valuations and solid earnings. But we rate the region as Neutral as we favor markets that are either more cyclical—allowing them to benefit from the improving Alexander Stiehler economic growth backdrop—or have higher structural growth exposure than UBS Switzerland AG the UK.

Latest Changes: We have removed Shell from our portfolio. Carsten Schlufter UBS Switzerland AG Benchmark: MSCI United Kingdom

Most Preferred Diana Na Company Changes* Currency Weight UBS AG London Branch

3I GROUP PLC GBX 6.3% Anglo American GBP 6.3% Rudolf Leemann AstraZeneca GBP 6.3% UBS Switzerland AG BAE SYSTEMS GBP 6.3% Barclays GBP 6.3% BP GBP 6.3% Sacha Holderegger UBS Switzerland AG Compass Group GBP 6.3% Computacenter plc GBP 6.3% Experian Group GBP 6.3% Thomas Parmentier Glencore Plc GBP 6.3% Consumers, UBS Switzerland AG HSBC plc GBP 6.3% Lloyds Banking Group GBP 6.3% Thomas Veraguth Rolls-Royce GBP 6.3% UBS Switzerland AG Shell Removed GBP 6.3% SSE PLC GBP 6.3% Please see important disclaimers and Standard Chartered plc GBP 6.3% disclosures at the end of this Weir GBP 6.3% document. Source: UBS, Consider potential trading restrictions, all figures are rounded *Changes since the last publication

Positioning and key trends We see a supportive backdrop for UK equities. Valuations are reasonable (12.3x forward P/E versus median since 1990 of 12.8x), global monetary and fiscal policies remain largely supportive, in our view, and the earnings outlook is strong. The recent surge in oil prices has lifted our earnings growth expectation for this year to 11% (we began the year expecting 5% growth), but we also see robust earnings growth of around 10% continuing into 2027, with improving economic growth offsetting an expected rollover in oil prices.

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This should continue to support UK equities, but we see a brighter outlook for other regions that are either more cyclically geared into a manufacturing recovery or have higher exposure to key secular themes such as AI or electrification. This does not mean that the UK offers no secular growth opportunities, but rather that these opportunities are better accessed via single-stock selections in the UK market. This also explains the very narrow market leadership of the UK over the past 12 months.

On the domestic front, all eyes will be on the new prime minister. But beyond a potential shift in sentiment towards UK assets, we see limited direct impact in the near term. For now, policies are likely to be moderate in order to establish credibility, especially around fiscal rules, and UK equities generate far more earnings outside the UK (around 75-80%), than within it. Swings in the currency can therefore matter more for UK equities than small changes to domestic economic growth expectations.

Our preferences within the region seek to capture a combination of structural growth at a reasonable price and beneficiaries of an improving cyclical backdrop and broadening equity returns.

Chief Investment Office GWM, 18 August 2026 Page 2 of 19