ETFs and currency risk

theGrinch

tradetime wrote: »

When you convert money from your base currency to another currency, or you invest in products that are a derivative of an underlying denominated in another currency, then there is always a currency risk. That said, with the amount of debt UK. Plc is taking on, I doubt Sterling will be zooming up against many currencies in the near distant future.

Then again if the government needs to raise hundred of billions to fund its plans, interest rates are bound to rise - possibly sharply and that will attact inflows into the UK chasing those higher rates. Exerting an oppose effect could be the weakness of the UK's financial sector and general economic weakness.

tradetime

theGrinch wrote: »

Then again if the government needs to raise hundred of billions to fund its plans, interest rates are bound to rise - possibly sharply and that will attact inflows into the UK chasing those higher rates. Exerting an oppose effect could be the weakness of the UK's financial sector and general economic weakness.

Well, that would be a theory, but then Iceland had sky high interest rates, right up to the end, didn't see too much money flooding in there. That's not of course to say the UK is Iceland, but simply to illustrate the point that raising your interest rates against a backdrop of very high debt, and a profound economic contraction does not lead to strong capital inflows.
The last thing the UK needs to do is raise interest rates and accelerate the contraction and a housing collapse, more likely they print money

sabretoothtigger

tradetime wrote: »

When you convert money from your base currency to another currency, or you invest in products that are a derivative of an underlying denominated in another currency, then there is always a currency risk. That said, with the amount of debt UK. Plc is taking on, I doubt Sterling will be zooming up against many currencies in the near distant future.

Sounds like Japan, only recently did the currency move up and cause some foreign investor losses

Printing money is more likely since they are already doing it

That brazil chart out does JII.L :T Was it a bubble or real



120 pages of elliot wave analysis of international markets in .pdf form

http://www.elliottwave.com/club/gmp/default.aspx?code=30443


Doesnt mention brazil unfortunately but does say india is a 'baby bull'

Dow is in a supercycle bear market (ie. M formation, etc) & will fall to 4000

SP500 also confirmed as a bear market rally

tradetime

That brazil chart out does JII.L :T Was it a bubble or real

Brazil rode the commodity bull, as it is resource driven, particularly oil and iron ore.
Out of interest exactly what is JII.L, some sort of active fund?

sabretoothtigger

JP Morgan Indian market Investment I think it is, been watching it a while wishing I'd done it instead of the ftse :laugh:


http://www.iii.co.uk/investment/detail?code=cotn:JII.L&it=le

tradetime

Yeah, thanx, gathered it was an India based investment, but still don't know of what nature, iii has negligible information on it. It caught my interest because of this
http://finance.yahoo.com/q/ta?t=1y&s=JII.L&l=on&z=l&q=l&c=epi++inp
INP, and EPI are both India ETF's, was in a trade on EPI for a month or two, the JP Morgan one seems to have held up better during the downturn.

turbobob

Hi, its an investment trust. In other words its a closed ended investment company traded on the LSE. It will be actively managed but they tend to have lower charges than unit trusts. The share price can trade at a significant discount or premium to the NAV.

JPM investment trusts homepage - http://www.jpmorganassetmanagement.co.uk/portal/site/it-uk
Trustnet page on the Indian IT - http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ITJII&univ=T

tradetime

turbobob wrote: »

Hi, its an investment trust. In other words its a closed ended investment company traded on the LSE. It will be actively managed but they tend to have lower charges than unit trusts. The share price can trade at a significant discount or premium to the NAV.

JPM investment trusts homepage - http://www.jpmorganassetmanagement.co.uk/portal/site/it-uk
Trustnet page on the Indian IT - http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ITJII&univ=T

Ah, thanx for that, I thought it might be actively managed given it's significant out performance during the downdraft, dunstonh would be impressed, (as am I incidentally at how well it performed relative to the other two I illustrated), though INP did much better in '07 and early '08
http://finance.yahoo.com/q/ta?s=JII.L&t=2y&l=on&z=l&q=l&p=&a=&c=epi,inp

tradetime

Quick question for you turbobob, since we have an actual example here, this fund has a Total Expense Ratio of 1.77% and a Management Fee of 1.20%, is the management fee in this case a part of the Total Expense Ratio, so to the holder the total cost ex commissions etc is 1.77% or in addition to it

sabretoothtigger

the management fee is a part of the Total Expense Ratio