“Dollar strength was the key factor for European investors – as Cazenove European manager Chris Rice put it to us recently ‘has the Euro now spent its three months in the sin bin?’. On balance with 42 per cent of our equity exposure in dollar based economies, and one third of our bond exposure heavily betting on the dollar, we feel well placed either way, but would expect further dollar strength at some point over the coming months. Japan, and the Yen, continue to strengthen relative to European markets and we choose to leave our overweight here too.”