UK Model Portfolios Heavily Exposed to US Dollar Volatility

Data from Defaqto reveals that over 90% of UK model portfolios have significant exposure to US dollar fluctuations against the pound sterling.

The analysis, shared with Investment Week, highlights a potential risk for investors in these portfolios as the value of the US dollar can have a significant impact on investment returns.

Model portfolios are pre-packaged investment selections designed to meet specific investor needs. They often hold a mix of assets and securities that are widely available to individual investors.