Overseas holding boost UK returns

Top UK fund managers pick key foreign stocks to add alpha

Several of the most successful UK fund managers are taking advantage of collective investment scheme rules that allow them to invest up to 20% of their portfolios abroad. In addition to the long-standing US position of Neil Woodford and Chinese holdings of Patrick Evershed, more and more managers are looking overseas in a bid to generate alpha. Woodford's Invesco Perpetual Income and Higher Income funds hold around 9% of the respective portfolios in US tobacco stocks. His top holding in both funds is Reynolds American, which represents around 6.6% of both the High Income and Income por...