Ignis' Brown on UK income

Firms with overseas earnings exposure are key in uncertain UK.

We are cautious about the prospects for the UK economy, and therefore seeking to limit our exposure to companies geared to the UK. A hung Parliament looks possible, and bond and currency markets will react poorly to such a situation. Even if a party wins a majority, they will be faced with a huge amount of debt, at both the state and household level. Happily, the UK stock market provides plenty of opportunities to diversify away from areas overly exposed to the UK, and many of the companies in the Ignis Higher Yield fund have significant overseas earnings. We are, however, very sensitive...