David Jane: Pounding on the exit door

The volatility that has surrounded the pound has dominated sterling returns, particularly for internationally oriented portfolios. However, currencies can be one of the most difficult asset classes to predict - if indeed currency is an asset class at all. Arguably, it is simply a means of measurement or exchange. Other asset classes have a natural return - equities have dividends, bonds have coupons and properties pay rents - and these characteristics also make them easier to value (by discounting future cash to the present day). The return coming from a currency position, however, is si...