Attn IFAs: Why is the UK considered exempt from 5% single country rule

purch

Speculative
This type of investor will be highly experienced and prepared to take higher levels of risk to gain greater levels of return. The portfolio holds no protective cash element, but is nearly entirely all equity based, although property investments offer some level of protection. A suggested portfolio mix is:
UK All Companies funds: 42%
European funds: 9%
North American funds: 9%
Japanese funds: 8%
Asia Pacific funds: 8%
Global Emerging Markets funds: 7%
Property: 20%

.....which brings us back to the original question...

Why put 42% in the U.K. Equity and 38% in the rest of the world ?

dunstonh

Why put 42% in the U.K. Equity and 38% in the rest of the world ?

That is the particular strategy of that bit of software. I dont personally agree with it because there is no specialist sector funds and UK All Companies would leave off UK equity income funds or UK smaller company funds. It doesnt allow for fine tuning. The UK sector should just be UK.

The reason for higher UK over other regions is partly historical and linked to currency fluctuations. Whilst we havent seem major currency fluctuations against Europe for a number of years, it could occur. North America is obviously the current example of currency fluctuations increasing to the volatility.

It is all down to risk. What "could" happen.