Image:
"The fall in sterling over the last decade has masked core investment selections by fund managers as they have enjoyed the majority of their returns from this decline," - Tavistock's Christopher Peel
Industry commentators have warned the majority of advisers and wealth managers have failed to hedge their foreign currency holdings into sterling, meaning a rally in the pound could wipe out returns.
In a further warning, they said unknowing investors in safe-haven assets such as global bond funds will be hardest hit by a sterling rally, as bonds are most affected by currency movements. In 2016,...
To continue reading this article...
Join Professional Adviser
- Unlimited access to real-time news, industry insights and market intelligence.
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters.
- Make smart business decisions with the latest developments in regulation, investing retirement and protection.
- Tap into our community intelligence through our regular Pro Adviser poll.
- Be the first to hear about our events and awards programmes.
