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Expat Investor : May June 2009
PRIVATE BANKING Continued from page 3 Investec provides a range of banking products, from easy access current accounts to notice and fixed term deposit accounts in multiple currencies. The minimum balance required to open a bank account is £25,000 or $/€50,000 or currency equivalent. It also offers a bespoke investment service with a minimum entry level of £5 million. The recent turmoil in the equity markets has once again led investors to consider cash as the asset class of choice while they wait for opportunities to appear. Although measures taken by central banks have seen interest rates decline, appetite for depositbased products remains strong, with clients looking to fix funds for up to 12 months. It is at times like this, however, that investors should perhaps not chase the highest interest rates but rather look for safety and consistency and deal with specialist institutions they can rely on. Investec recognises the importance of its offshore location, which provides a tax efficient environment for expatriate investors in particular. In addition to its existing multi-currency accounts, Investec recently launched Australian dollar and South African rand versions of its 32 day notice Direct Reserve account, due to an increased demand from expatriate clients. Investec also maintains its own treasury operation in Guernsey, affording the bank full autonomy to manage its asset and liability book alongside its clients’ foreign exchange requirements. “Investec’s client relationship managers are based in Guernsey and this means clients are able to liaise directly with someone who can provide high quality information to enable clients to make informed and beneficial decisions.” With many of Investec’s clients living and working overseas, fast and easy communication is vital. Hence, clients can now securely view their account information online, allowing easy monitoring of their assets in a different time zone. Investec’s client relationship managers are based in Guernsey and this means clients are able to liaise directly with someone who can provide high-quality information to enable clients to make informed and beneficial decisions. further out the yield curve than they would have in the past. RBC recently issued a two year Aaa-rated bond that received significant interest from investors looking for credit exposure to a strong and stable institution with a good yield. FX-linked products such as Dual Currency Deposits,Wedding Cakes structures and One Touch structures provide excellent opportunities for yield enhancement in this low interest rate environment. These bespoke instruments are designed to factor in the investor’s views on market volatility and capital protection requirements. RBC recently issued a Dual RBC WEALTH MANAGEMENT RBC Wealth Management’s minimum entry levels are typically investable assets worth £125,000 at the emerging high net worth level, and £1,000,000 at the high net worth level. The world has changed.With interest rates at an all time low, yield enhancement is a topical issue with most clients. RBC Wealth Management is currently recommending a number of solutions to increase returns, such as investing in high grade corporate bonds and FX-linked deposits. Another solution for clients chasing returns is to go Expat Money– the definitive personal finance manual for Brits abroad THIS BOOK COULD SAVE YOU THOUSANDS OF POUNDS EXPAT MONEY is the unique personal finance guide for Brits abroad. It explains simply and clearly how to make the most of your money whenever and wherever you want. EXP EXPAT MONEY The Definitive Personal Finance Manual for Brits Abroad HANNAH BEECHAM & JOHN O’MAHONY Topics covered include: ● currency exchange ● offshore banking ● banking abroad ● best buy savings products ● offshore mortgages ● expat investment opportunities ● insurance and health cover ● non-resident status – the expat’s best-kept secret ● dealing with the tax authorities - home and away EXPAT MONEY offers a comprehensive introduction to all aspects of expatriate personal finance and answers those essential money questions you’re sure to encounter. Whether you’re leaving to work, to retire or buying a second home, don’t leave the UK without it! About the author Hannah Beecham – the expat expert – is the most experienced and longest-serving journalist and editor in the expatriate finance sector. She was a founding member of the Financial Times magazine, The International, and for 11 years has been the editor of Expat Investor, as well as offshore finance editor of the International Express. EXPAT MONEY – the only guide to expatriate personal finance matters, is published by Summersdale (paperback, £8.99) and is available through all good bookshops and internet booksellers or through www.summersdale.com 4 EXPAT INVESTOR ● May/June 2009 expatinvestor.com Currency Deposit yielding a 10% annualised return, which is a significantly higher rate of return than investors could expect from holding many other cash instruments. ROTHSCHILD – CHANNEL ISLANDS Rothschild has provided a comprehensive range of banking services to private clients and professional intermediaries from its Guernsey base for over 40 years. Our wide range of services is “The financial crisis has made people re-evaluate how they manage their wealth; they now really understand risk like they never did before and really want to do something about it.” This type of product has been particularly well received by clients – especially those with multiple foreign currency needs (e.g. arising from owning property abroad, being non-domiciled in the UK or having family in other countries) as the instrument redeems in one of two currencies. Following massive volatility, international clients who have property or investment exposure overseas are less prepared to take the risk on currencies now than they were 18 months ago. They are increasingly hedging their exposure by using rolling forwards or options strategies. Other clients see volatility as creating opportunities and are very open to the idea of switching between currencies. They are using DCDs to get enhanced returns whilst taking the risk of currency conversion. “Four or five years ago, currencies were viewed as an unavoidable by-product of global diversification,” says Phil Cutts Head of Advisory, British Isles at RBC Wealth Management. “Now people are much more aware that currencies can drive return both up and down. The financial crisis has made people reevaluate how they manage their wealth; they now really understand risk like they never did before and really want to do something about it.” focused on the preservation of wealth, the management of risk and a detailed understanding of each client’s needs. To open an account, you need to make a minimum initial deposit of £100,000 (or currency equivalent) and via your dedicated account officer our services include call, fixed, structured, dual currency and fiduciary deposits, Visa debit and charge cards, sterling chequebooks, foreign exchange and 24-hour access to Internet banking through ArrowOnline. Once you become a client, you also have access to our execution only securities dealing and custody service with valuations of your portfolio available through ArrowOnline. We provide credit facilities secured by cash, fixed interest and mutual funds in conjunction with investment and trust services, which are provided through sister companies and involve strategic asset allocation advice to arrive at an optimal investment portfolio. The fact that interest rates are currently at an all time low, coupled with the recent turmoil in financial markets, has significantly altered the landscape for savers and investors who were previously able to enjoy regular income and/or growth from such monies. In response to this, we have witnessed a change amongst our client base with the security, history and reputation of the bank now being seen as even more important than hitherto. The Rothschild Group’s conservative approach to its business over the last two centuries has assisted us enormously in recent months in attracting deposits from new clients, as well as additional deposits from longstanding clients seeking a safe and secure home for their savings. Rothschild recognises the importance of providing an everwidening range of products designed to ensure that you have the maximum opportunity to protect and grow your personal wealth. We also realise that your circumstances are continually changing throughout your life, and the services we offer have to adapt. We also realise that EXPATEXP MONEY HANNAH BEECHAM & JOHN O’MAHONY
March April 2009