Wednesday, September 5, 2012

Euro / Singapore Dollar Exchange Rate

From 2008 to 2010 we endured a double whammy in investment performance because of poor perfroming markets as well as a rapidly declining USD / GBP base against SGD.  There were few SGD hedged investments at that time because for so long the rates had been heading the opposite direction so nobody wanted to hold SGD.

In 2012 things have stabalised more with USD / GBP against SGD - that is to say both currencies are relatively weak, especially sterling and many investors are now taking a view that they may increase their long exposure to these currencies.

Where we are left floundering is with the Euro.  Many of our investors have a euro base, that they will return to.  Relatively in SGD their investments are looking worse than they might because of the currency decline, falling almost 14% in the last 12 months, so even the best euro investments will have lost money in that time period.

We have researched and established a good portfolio hedge to counter this, and achieve stability in return, and also keeping a Euro base for those clients looking to repatriate in the long term.  Of course every individual will see things differently but we are able to tailor a solution for our clients based on bespoke needs, no matter what size the portfolio.

Mark Paine
Meyado
Singapore
www.meyado.com.sg

About Me

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I joined Meyado Private Wealth Management as an international financial adviser in 1993. I have lived and worked in the USA, Europe, the Middle East and currently reside in Singapore in South East Asia where I am Managing Director of Meyado Pte. I am a qualified Financial Representative in Singapore under the MAS Financial Advisers Act as well as holding UK FSA CFP and FPC examinations and a BSc in Business and Law from the University of Hertfordshire in the UK. You can contact me at markpaine@meyado.com