European Investment funds

FATHEROFTWO_2

I have a portfolio which includes:
Gartmore European select
and
Neptune european opps.

Since these funds ar european companies but units priced in Pounds how will this effect the value of the funds if the pound continues to fall against the Euro ?

If as many people are saying that the Pound is finished as a currency how will this effect both these funds and my Uk equity funds such as :
Invesco perp high income?

Does currency exchange influence any of these funds or will the compensate for the downgrading by increasing in value?

I posted a thread earlier on all star fund managers.

Just an update I decided in october to sell all my global riskier funds and go cash.
At this point I was 25 percent down on my portfolio.
I held it in cash and bought/drip fed into invesco perp high income and the above european funds when each large market fall was announced effectively averaging down on these funds.

My portfolio is currently down 8 percent which I think isnt too bad considering I was reading that anything around 20 percdent loss in this market is good.

I think that averaging down on funds may be a good option and equity income such as Invesco perp high income paying dividend yield of around 4-5 percent from apparently solid companies may be a good way to go.

Its certainly scary out there just now but if you stick with what you can measure its a good start

purch

Since these funds ar european companies but units priced in Pounds how will this effect the value of the funds if the pound continues to fall against the Euro ?

You would hope that the Fund Manager has hedged the exposure, infact you would hope that the Manager will always take currency fluctuations into account.

dunstonh

If as many people are saying that the Pound is finished as a currency

Many people = those that have read an article from someone with a history of creating currency speculation for their own profit.

Makes you wonder how sterling survived world wars and worse economic problems than this in the past.

Cant answer rest now, got to go...

wriggly

purch wrote: »

You would hope that the Fund Manager has hedged the exposure, infact you would hope that the Manager will always take currency fluctuations into account.

Actually, with the pound falling, you're better off if the manager has not hedged. If the share price rises 5% and the Euro rises 5% against the pound, you will see a 10% rise in the sterling price. Of course, recently, you've probably seen the share price falling while the Euro rises, so a mixed result.

In the next few months, you might see the Euro dropping against the pound. That's the situation where hedging would benefit you.

hedger

i have a lot of money tied up in St Jamess Place (Invesco, GAM etc) and have to admit Im keeking myself. dunno whether to stick or twist. surely we are only heading one way for the next couple of years and thats down

dunstonh

surely we are only heading one way for the next couple of years and thats down

Remember that the markets have priced in already an expectation of recession. Maybe too much, maybe not enough but if the expectations are right, you would expect to see a signs of market growth some time this year. Even when the recession is still going on and the news is bad.

Count_Dante

Remember, a lot of the earnings British companies make come from Europe and the States, so UK shares aren't so bad.

FATHEROFTWO_2

Thanks for your replies but its still not clear to me,

Re the european stocks.

I have bought the funds in GBP but the company funds are European.
If the pound slumps against the euro and the shares within the funds hypothetically stand still will my portfolio value of these funds show an increase or decrease in pound pricing?

jon3001

FATHEROFTWO wrote: »

Thanks for your replies but its still not clear to me,

Re the european stocks.

I have bought the funds in GBP but the company funds are European.
If the pound slumps against the euro and the shares within the funds hypothetically stand still will my portfolio value of these funds show an increase or decrease in pound pricing?

If they're anything like my funds they'll show an increase.

In fact my Japanese funds are showing a slight increase over 12 months despite Japanese stocks being hit hard because the Yen has been surging against the Pound. Currency gains offset stock market losses.

jamesd

Based on history of stock market behaviour and economic predictions. Which means no guarantees but likely to happen, just with uncertainty about when.

FATHEROFTWO_2

Any other takers on the impact of the value of the pound on european funds held in GBP