Fund of the week: Profit from a falling pound

With many UK firms earning their money overseas, it makes sense to take advantage of a weakening pound by buying a fund that invests in leading global businesses.

A fall in the pound is bad news for holidaymakers, but it has its advantages too. "Rather than bemoaning your holiday cash," says Mark Dampier in The Independent, why not look for funds, such as BlackRock UK Special Situations, which invest in leading global businesses? Many of these firms earn their money in different currencies, so when sterling falls, overseas profits rise.

Manager Richard Plackett claims many of his stocks, such as Unilever and Shell, have considerable overseas earnings power and could see revenues boosted by sterling's weakness. He certainly has the right track record, with 22 years of investment experience that has included successes at M&G and with BlackRock's smaller-companies and income funds.

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HSBC Holdings5.10%
Rio Tinto4.50%
Royal Dutch Shell4.50%
BHP Billiton4.40%
Aveva Group3.80%
Rotork3.10%
Victrex3.10%
Vodafone Group3.10%
Unilever3.00%
Senior2.90%
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