Advice on investment strategies

[Chorlton]

Hello All,

I'm looking for some general advice on the following:

A family member of mine who also lives in Australia has been investing in a couple of UK shares (via an Australian Broker) over the last year and although relatively new to "investing" has made a v.good return to date. He would now like to sell those shares, as he wants to lock in those profits.

However, due to the ongoing fall in exchange rates between GBP Sterling and the Aussie AUD, a large percentage of his profits would be eaten up by the difference in these rates & consequently he would like to keep the profits "invested" and in GBP until the exchange rate improves, at which point he will then transfer the money back over.

One idea suggested was to reinvest the profits in a boring but stable UK stock and thus keep the money in GBP until the rate improves.

Has anyone got any other ideas on how he can achieve this goal??

Just for clarification, I am not looking for any specific financial advice (for obvious reasons) but merely some general ideas which can be explored by him in more detail.

Any help much appreciated,

 

[joe4422]

Can he not park his pounds in a bank account, or a CD or something. Many who fear the rally many have reached a top are now looking at the industrial or agricultural sectors.

 

[dealer911]

Hello All,

I'm looking for some general advice on the following:

A family member of mine who also lives in Australia has been investing in a couple of UK shares (via an Australian Broker) over the last year and although relatively new to "investing" has made a v.good return to date. He would now like to sell those shares, as he wants to lock in those profits.

However, due to the ongoing fall in exchange rates between GBP Sterling and the Aussie AUD, a large percentage of his profits would be eaten up by the difference in these rates & consequently he would like to keep the profits "invested" and in GBP until the exchange rate improves, at which point he will then transfer the money back over.

One idea suggested was to reinvest the profits in a boring but stable UK stock and thus keep the money in GBP until the rate improves.

Has anyone got any other ideas on how he can achieve this goal??

Just for clarification, I am not looking for any specific financial advice (for obvious reasons) but merely some general ideas which can be explored by him in more detail.

Any help much appreciated,

He could buy a FTSE ETF - nice and diversified - or why not just keep GBP insdead as the other guy said ? - although the out look for sterling doesnt really look that great long term.

 

[Chorlton]

Can he not park his pounds in a bank account, or a CD or something. Many who fear the rally many have reached a top are now looking at the industrial or agricultural sectors.

Thanks for the reply. As he resides in Australia I'm not sure how easy it would be for him to open a UK Bank Account from overseas. If its relatively straightforward, then this would definately be the simplest and easiest option.

 

[Chorlton]

He could buy a FTSE ETF - nice and diversified - or why not just keep GBP insdead as the other guy said ? - although the out look for sterling doesnt really look that great long term.

Hi Dealer,

A FTSE ETF is definately an option worth considering because, as you say, its nicely diversified. However, from talking to him recently I think he would rather prefer to protect his profits as much as possible so opening a UK Bank Account (if it can be done easily enough) would probably be the preferred option.

Regarding the outlook for Sterling, I'm also in the position of wanting to transfer money from the UK to Australia so would be interested in your views on future FX rates. Having not been in the UK for a little while now, I have lost touch with all details of the UK economy. I am aware of the bigger impact that the GFC has had on the UK economy but was hoping that we would see some level of recovery in the short-medium term.

Consequently, I'd be interested in your views on this....


Kind Regards,

 

[Chorlton]

Thought I'd "bump" this post up and see if anyone can help respond...

Regarding the outlook for Sterling, I'm also in the position of wanting to transfer money from the UK to Australia so would be interested in your views on future FX rates. Having not been in the UK for a little while now, I have lost touch with all details of the UK economy. I am aware of the bigger impact that the GFC has had on the UK economy but was hoping that we would see some level of recovery in the short-medium term.

Consequently, I'd be interested in your views on this....