Election uncertainty: Newton's Metcalfe ramps up overseas exposure on £2bn fund

The manager of the £1.9bn Newton UK Income fund is running close to his maximum overseas allocation in an effort to mitigate the risks to the fund from the upcoming UK election.

Chris Metcalfe (pictured) currently has 18% invested outside the UK, up from 14.8% this time last year. The fund may invest up to 20% in overseas companies, according to Investment Association rules. Metcalfe said: "The run-up to the election has made us invest fairly fully in the overseas element of the portfolio. We are also aware of the changes a Labour-led government might make, so we have a degree of caution on some sectors, such as UK transport." The manager has around 9% of the portfolio invested in Switzerland, partly as a result of his increased allocation to the healthcar...