Falling sterling prompts changes to Premier's Global DSR offering

Premier's Mike Jennings has removed the requirement for his Global DSR fund to have at least 50% sterling exposure due to its negative impact on performance.

When he launched the £8m fund in May 2008, Jennings said he would used hedges to ensure at least half the currency exposure was in sterling to reduce volatility However, as a result of the fall in sterling, Jennings calculates this has cost him around 9.9% in performance versus his peers and means he will miss his return target on the fund’s three-year anniversary. “Although having 50% of the fund denominated in sterling has succeeded in cutting the absolute risk profile of the portfolio, it has substantially cost the relative performance against peers,” he says. “In light of the t...