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M&G shuns sterling and dollar

M&G’s cautious multi-asset fund is focusing its fixed-interest exposure on currencies such as the euro and yen because these are stronger than sterling and the dollar.

Fund manager David Jane, M&G’s head of equity investment, thinks sterling will weaken against the euro and the yen as expectations of a long period of low UK interest rates, coupled with more quantitative easing, will put sterling under pressure in foreign exchange markets.

Jane wants more exposure to stronger currencies and emerging market debt. He believes emerging markets have stronger economic fundamentals, healthier current account balances and public sector finances.

He says: “It is in the interests of the US to have a weak dollar in order to help the exporters, and the same argument could apply to sterling.”

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