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
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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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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Aviva Investors UK Lstd Eq Uncons2GBPAcc410.29 GBP0.50Rating
Invesco UK Eq High Inc UK Z Acc283.13 GBP0.63Rating
Invesco UK Equity Inc UK Z Acc289.32 GBP0.71Rating
JPM UK Dynamic C Net Acc2.29 GBP0.84Rating
LF Equity Income C Sterling Acc3.44 GBP0.00
Liontrust UK Growth I Inc483.98 GBP0.19Rating
Omnis Income & Growth A Acc76.60 GBP0.40Rating

About Author

Ashis Dash  is a Morningstar Fund Analyst