Best option for exposure to FTSE listed international earnings...?


#1

Which of the UK Large Cap trusts offers the greatest non-GBP exposure to revenues and earnings?

If your view is that GBP may well continue to weaken (particularly vs USD where the rates cycle has clearly turned), what is the best way to gain exposure to the potential translation gains as non-UK earnings buy more GBPs…?

A truly globally invested fund is the obvious choice but, with c.70% of FTSE revenues denominated ex-GBP, another angle might be to find the fund most exposed to this index characteristic.

Thank you in advance. Thoughts/ideas all welcomed…


#2

I’d put up the Lowland IT (LWI) run by James Henderson as a candidate
.
Since the BREXIT vote the LWI share price is (as I write) up 30.6% in total return terms while the NAV trails behind with a gain of 23.7% - the discount having tightened from 10% to 4%.

33% exposure to financials with large ex-UK interests
28% exposure to exporting industrials
11.5% exposure to oil and gas
10% exposure to basic materials

The Lowland share price noticeably underperformed throughout the previous 12 to 36-month period, sliding from a 7% premium to a 10% discount. But since Thursday, 23rd June 2016 has been in the right place to take full advantage.