SLI multi-asset team goes long sterling over euro

The Standard Life Investments multi-asset team believes taking a long sterling position against the euro now looks attractive.

Fund manager Tam McVie says over the longer term the trade would perform well. "The euro is at multi-year highs at 90 cents to the pound. That is a good buy because our long term house view sees it being closer to 70 cents," he says. The £2.4bn Global Absolute Return Strategies fund was 0.6% exposed to long sterling versus the euro at 31 December. In addition, SLI head of global strategy Andrew Milligan says a sterling crisis is unlikely though currency markets will remain volatile until the summer. "Sterling is in difficulties period for the next three to six months," he says. ...