Expats warned to watch their investments
26/02/2008
Britons living abroad need to keep a very close eye on their investments following the downturn in global stock markets – or risk a severely compromised retirement, warns online investment funds analyst Moneyspider.com.
As more and more older Britons return to the UK because they have effectively run out of capital to sustain them abroad,Moneyspider.com says that regular portfolio health checks are vital to make sure expat investments are on track.
“Some of the best known fund managers have some of the worst performing funds but how do expats distinguish between the pedigree funds and the hounds,” says Moneyspider.com director Tony Ahearne.
“The recent round of market volatility is an uncomfortable reminder of just how crucial it is to monitor stock market-based investments, including ISAs, PEPS, Unit Trusts and OEICS,” he adds.
“There are now around 5.5 million Brits living overseas, many of these very elderly and dependent on their investments for income and living expenses as well as capital growth to offset the pernicious effects of inflation.
“But for those living abroad, getting meaningful information on how their funds are performing and crucially how they compare with the multitude of other funds in the market is not easy. By registering their funds with Moneyspider.com, they will benefit from their entire portfolio being updated daily.
“Moneyspider.com compares the performance of all 2,000 or so funds and provides a unique rating for each one. For expatriates this could make the difference in retirement between financial well being and penury,” adds Ahearne.
While Britons currently living abroad are known to be keen investors, too many are kept in the dark by the managers who run their investment funds.
“Many will not realise, for example, that while a big brand fund manager may be doing well in one sector, another fund run by the same group can be a complete turkey,” he remarks.
“It’s important to be aware of the fact that some of the best performing funds are from the least well-known fund managers.
At the core of Moneyspider.com’s service is an easy to follow ratings system which indicates how the investor’s funds are performing. The unique Moneyspider Rating® System ranks every fund from A (very high rating) to E (distinctly poor).
“Any expat with a portfolio of D and E rated funds has a problem of which he or she is probably completely unaware. Where money is concerned ignorance is certainly not bliss - rather it is potentially disastrous,” he says.
“In addition to rating each fund our personalised reports also show the current value of a portfolio and give details on the performance of an expat’s funds compared to others in the same sector and in other sectors.
Updated daily, it is an invaluable tool, and for the typical expat, thousands of miles away from these shores, can be a financial lifeline”