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.

"I do not put a very high probability of a sterling crisis as any government will put into place a credible fiscal policy to reassure the ratings agencies. All the parties know what needs to be done."