Get better returns on your overseas investments

Sponsored If you've invested overseas, taking control of your international money transfers and foreign exchange requirements could save you thousands over the years.

Wed, Apr 2, 2014, 11:09

A savvy investor looks far beyond home to find the best opportunities and most prudent place to keep their assets. This could be bonds in America, property in the UK, or equities in Australia.

However, managing a global portfolio can come with challenges, not least among them the currency markets. Fast moving market exchange rates can hit revenue and diminish returns on investments. On the other hand, making the most of exchange rate movements can boost returns by thousands.

To give an example: you have joined a Small Self Administered Scheme (SSAS), where the scheme's trustees have decided it would be a solid investment to purchase property in London before the price rises. This decision was made in August 2013 when the euro was riding high against the pound at €0.88. However, to find a suitable property and clear the paperwork took a number of months and the purchase couldn't happen until January 2014. By then the pound had surged in value bringing the euro down to €0.82. This means buying property in London will be relatively more expensive. For example, a £250,000 property would have cost €284,000 in August when the euro was strong, but a property of the same price would be €305,000 by January. This leaves your pension scheme over €20,000 out of pocket.

The same problem can arise when purchasing or liquidating securities and assets all over the world. Whether you've invested in US government bonds, South African stocks or Australian equities you will always be dealing with two markets; firstly the market you have invested in, and secondly the foreign exchange market.

As well as the foreign exchange market changing the value of your assets, you could face exchange rates from other currency service providers, that could trim margins off of your investments. Paying your bank, for example, a margin of one percent here, four percent there,might not seem like a big loss - but if you factor this cost into your international money transfers over the course of many years then it could well end up running into tens of thousands.

With the Irish Times International Money Transfer Service, provided by exchange experts Moneycorp, you can enjoy bank-beating exchange rates that can save you thousands on your overseas transfers, for example typical savings vs a bank on a transfer of €100,000 into sterling can be around €3,000.

Moneycorp can also protect returns on your investments from foreign exchange market movements, and every customer receives expert market guidance from their own personal account manager. They will be a professional currency dealer and their insight to the market can help you time your transfers to make the most from exchange rate fluctuations.

If you fully explain your requirements, your account manager can tailor a foreign exchange plan to fit your needs.

If the current market rate is favourable and you don't need to immediately make a transfer they could offer you a "forward contract", which fixes an exchange rate for up to two years in advance of making a transfer.

Alternatively if the current market rate is poor, you can target a better rate with a "market order", which automatically buys foreign currency when the exchange rate hits a level you specified in advance.

If you want to know more about how to improve the returns on your overseas investments, get in touch with Moneycorp today. With the expert help of Moneycorp, you could save thousands on your international money transfers and foreign exchange requirements.

To find out more, email theirishtimes@moneycorp.com or call +353 1 644 7950.