Qualifying recognised overseas pension – Gerard Associates

Qualifying recognised overseas pension – Gerard Associates

At Gerard Associates Ltd we continue our daily look at factors affecting markets and currencies allowing some insight into conditions affecting exchange rates.

Cash and income timing from a UK Pension or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximise the Pension, QROPS and investment income taken.

Investment market volatility and currency exchange remains a challenge. The global economics are volatile and unprecedented in history. Currency exchange continues to concern expats with UK Pensions, QROPS and now QNUPS (Qualifying non UK Pension schemes).

Monday's release of the manufacturing Purchasing Managers' Index (PMI), coming in at the highest level since July, had boosted sterling. The positive data came on the back of last week's GDP data showing the economy grew twice as fast as expected in the third quarter. However future growth was darkened yesterday by poor UK Construction PMI Data and Sovereign selling adding pressure on the pound.

Activity growth in Britain's construction sector slowed more than expected in October to its weakest in eight months, after The Market/Chartered Institute of Purchasing and Supply construction PMI fell to 51.6 in October from 53.8 in September.

Consensus expected the data to be slightly weaker at 53.0 the previous month, however the 51.6 figure was touching too close to the 50.0 level which if broken would show contraction, rather than a growth.

"The purchasing manager's survey indicates that construction activity is losing momentum and the economy will not be able to rely on a significant growth contribution from the sector going forward, unlike in the second and third quarters," said an UK economist at IHS Global Insight.

Sterling fell sharply against the Euro after the PMI data, dropping to €1.1401 from a 4 week high €1.1555 reached on Monday. The pound also fell slightly against the dollar but with U.S. Fed Interest Rate decision today, which could potentially see additional QE measures implemented, meant the dollar's gains were minimal against sterling and saw losses against the majority of other pairings.

The Euro pushed back through $1.40 against the Dollar as the Fed decision loomed.

"Sterling is down on the data because the recent strong Q3 GDP figures were boosted by construction but this looks to be an overreaction and I don't think the sterling weakness will last said currency strategist at nabCapital.

A more positive outlook for the economy has reduced calls for the Bank of England to implement a fresh round of quantitative easing measures to support the economy.

The Bank of England's November monetary policy decision, due on Thursday, was not expected to contain any surprises, despite MPC member Adam Posen's call in October for fresh easing steps.

"While we do not discount the risks surrounding the UK economy's medium-term outlook (primarily due to forthcoming spending cuts), it remains too early to consider QE stimulus," Credit Agricole CIB analysts said in a note to clients.

Gerard Associates Ltd advises expats and people considering living abroad on the technical and currency options available for Pensions, QROPS, QNUPS and investments in a clear format allowing all customers to make an informed choice. Our service encompasses Pension including QROPS and QNUPS and investments in a clear format allowing all customers to make an informed choice.

This with the reassurance and security of UK FSA authorised and regulated advice - essential for your security.

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Russel Mori writes for Gerard Associates LTD, for more information on QROPS advice, QROPS Pensions, QROPS List, QROPS providers, QROPS Guernsey info available online.