Andrew Morris: The surprising impact of currency

Diversification is key

clock • 3 min read

In his latest monthly column on investment risk, Andrew Morris considers the impact currency can have on portfolio returns and what can be done to ensure an appropriate exposure is maintained to both UK and overseas assets

Having looked at portfolio rebalancing and the distortion of risk, I thought it prudent this month to consider an oft-forgotten driver of investment returns - currency. When picking up the KIID of a fund with overseas exposure, you will see the risk of ‘currency movements in the value of overseas assets may impact the value of the fund' often cited. But just how much of an impact do they have on the returns generated by a UK investor? At the most extreme, one only has to look at the example of Russia in 2014. Following the military incursion into Ukrainian territory and the ensuing sanct...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

US investment manager Nuveen to buy Schroders in £9.9bn deal

US investment manager Nuveen to buy Schroders in £9.9bn deal

Combined group will oversee almost $2.5trn of assets under management

Linus Uhlig
clock 12 February 2026 • 2 min read
UK DIY investment grew by more than £100bn in 2025

UK DIY investment grew by more than £100bn in 2025

According to data released by Boring Money

Patrick Brusnahan
clock 11 February 2026 • 2 min read
Darius McDermott: Think active for the decade ahead

Darius McDermott: Think active for the decade ahead

'There are reasons to be nervous about the largest companies in the index'

Darius McDermott
clock 11 February 2026 • 5 min read