If you have investments in Euro denominated funds, the chances are you are not seeing the heady performance compared to funds invested in Sterling over the last few years.
The degree of out performance of Sterling over funds invested in Euros can be quite staggering.
The problem seems to be that when looking into Euro funds to invest, it is our experience that there just is not the same choice of good performing funds; in fact the choice is much smaller.
In addition, the higher charges relating to some Euro funds can erode the returns. We are now seeing UK discretionary fund managers offering their good performing funds in Euros, which is changing the landscape for Euro fund investors for the better.
This means that anyone invested in Euro denominated funds should have their portfolio reviewed. You may have Spanish Investments, in which case how have they performed over the last five years? A managed fund with a well known UK fund manager invested in Euros and available to UK Expat Spanish residents has achieved an average 5.5% gross return per annum over the last 5 years. This fund is medium or balanced risk.
The average annual returns for cautious risk investment with the same company has been 4.0% per annum gross return over the last five years. How do your Euro funds compare? https://www.prudential-international.com/pdf/PRUF479302.pdf
It takes a lot of skill and due diligence to find good consistent performing funds in Euros, and we find that most expat investors would like to see the historical performance of a fund when considering investing. We ensure our investors understand that past performance cannot be relied upon for future performance; however, it is a good benchmark to assess in terms of a fund manager’s track record. Indeed, we also look at many other factors when choosing investment funds. Our primary objective when advising individuals is we will only advise someone to invest in a fund management company that we have heard of, been running for at least five years, passes our due diligence and most importantly, it has to be regulated.
Now is a very good time to review your investment funds and let us have a look at how your portfolio is performing, take a closer look at charges and how the fund is regulated.
So start with a consultation and have your investment fund questions answered.
This article is based on the opinion of the financial adviser and author, and does not reflect the views of Blacktower. The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.
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