Fund pickers reassess UK equity fund exposure as Brexit fears weaken sterling

Concerns over weakening sterling

Fund pickers are shunning UK equity funds and hedging their sterling exposure as currency volatility looks set to continue in the run-up to June's EU referendum, with the pound hitting a seven-year low last week on fresh Brexit concerns.

London Mayor Boris Johnson's announcement he is backing the ‘out' campaign led the pound to fall 1.7% versus the dollar to $1.41 last Monday, its worst daily performance since May 2010. It subsequently continued to fall to $1.39, its weakest level since 2009. Gosling's Grouse: Hot air and egos over Brexit With analysts at Citi estimating the chances of a Brexit have risen to 40% since David Cameron set the EU referendum date for 23 June, wealth managers are continuing to swap small- and mid-cap UK equity exposure for other sectors and regions. Rob Burdett, co-head of the multi-manag...