FinanceMoneyspider Investment NewsExpats should check their investments – or face “a ruinous future” Expats should check their investments – or face “a ruinous future”
09/05/2008
Thousands of Europe’s UK expat investors/PEP and ISA holders could be facing a ruinous future by not bothering to review their portfolios during the current climate of market volatility and currency decline, warns online investment funds analyst Moneyspider.com.
“Expecting last year’s top performing funds to continue to deliver the same returns in 2008 is a short-sighted approach that could have a disastrous effect on the both the short and long term financial situation of thousands of Britons living abroad,” says Moneyspider’s Tony Ahearne.
“It’s easy to lose touch with what’s happening in the global markets and assume that the good advice that formed the basis of your financial security when it was given, perhaps years ago, is still valid. But unintentional neglect could lead to a premature end to the dream of living comfortably abroad,” he adds.
With the steep fall of the pound against the euro, those expats who rely on an income from investments in sterling have seen their buying power take a nosedive with their pound now worth just €1.26 compared to €1.46 this time last year and €1.62 when the euro was first launched in 2002.
And with property values in Europe generally and Spain in particular falling after a decade of boom, a strategy of realising the equity from one’s property for future financial security is also looking extremely shaky.
“The unpalatable scenario of having to return to the UK because dwindling capital is no longer bringing in enough to live on is a very real risk,” says Ahearne.
“Regular portfolio health checks are vital to make sure expats’ investments are on track, 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 free their funds with Moneyspider.com, they will benefit from the opportunity to monitor their entire portfolio on a daily basis.”
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 between continuing their comfortable life overseas or having to throw in the towel and return home.
“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 ones which have slipped into mediocrity?” says Ahearne.
“The volatility that has shaken the foundations of global markets over the past few months is an uncomfortable reminder of just how crucial it is to monitor stock market-based investments, including ISAs, PEPS, Unit Trusts and OEICS.”
But relying on the past performance of individual fund managers can be a fundamental error.
“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 dud,” says Ahearne.
“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).
“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 home, can make the difference between pursuing their dream or being forced to give it up.”
To find out more about the Moneyspider service, click the link below. Mature Times has negotiated for you to receive a cheque for £20 once your funds are registered. To receive your £20 cheque, insert the promotional code MT24 when prompted at the registration stage.