Managers stick with sterling after volatile 2010

Fund managers are expecting sterling to bounce back later this year after being one of the casualties of strong currency volatility this year.

While sterling has climbed 4.7% against the ailing euro in 2010, the pound is still 10% and 12% lower against the dollar and yen respectively. Thanos Papasavvas, who oversees more than $4bn (£2.7bn) in active currency funds at Investec Asset Management, believes sterling is the cheapest of all major global currencies right now. “The aims of the coalition Government seem to be well accepted and we believe this was probably the best of the potential post-election scenarios for sterling,” Papasavvas says. “The UK is getting its house in order and a lot of the doom and gloom which was ...