Fund Managers Back UK plc Despite Brexit Risks

Omnis Income & Growth, managed by Neil Woodford, has the highest exposure to UK revenues in the new Morningstar survey of UK funds

Ashis Dash 28 March, 2019 | 1:59PM Peter Brunt

Neil Woodford

With the outcome of Brexit still largely unknown, it has never been more important to understand the level of exposure to the UK domestic economy. While Investment Association sector definitions dictate that UK equity funds are required to have at least 80% of total assets invested in UK-listed companies. There are, however, no limits on where their revenues originate.

It is only by digging into a portfolio and gaining an understanding of the regions where companies' source their revenues that a more comprehensive picture can be drawn. Using Morningstar's new Revenue Exposure by Region metric, we compared funds found in the UK equity income, UK large-cap equity, and UK flex-cap equity Morningstar Categories with the FTSE All Share Index. This enabled us to identify how UK equity funds are positioned to give an indication of their convictions and offer a view on how they are placed to cope with different Brexit outcomes.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aviva Investors UK Lstd Eq Uncons2GBPAcc263.56 GBP0.34
Invesco High Income UK Z Acc225.71 GBP-0.40
Invesco Income UK Z Acc224.66 GBP-0.35
Invesco UK Strategic Inc UK Z Acc230.44 GBP-0.33
JPM UK Dynamic C Net Acc1.65 GBP-0.48
LF Woodford Equity Income C Sterling Acc12.53 GBP-0.16
Liontrust UK Growth I Inc388.79 GBP-0.24
Omnis Income & Growth A Acc57.84 GBP-0.40

About Author

Ashis Dash  is a Morningstar Fund Analyst

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