Good morning,

 

Equity markets look set to have one of their best calendar months of the year, with a strong rebound led by shifting interest rate expectations and solid Q3 earnings. The nature of returns throughout November also brings a key consideration to the forefront of the minds of fund managers: the impact of currency fluctuations. As detailed in the table below, local currency returns have been stronger than euro returns so far this year; and quite markedly in the last few weeks. Much of this is down to a weakening US dollar. As the dollar falls, the returns of US based investments are worth less for us in Ireland. At Zurich, we could hedge currencies and we have done so in recent times in relation to the US dollar. This has helped to soften the impact of a weakening dollar over the last while. Despite the overwhelming dominance of US dollar assets within global equity markets, always remember it is the final euro return which matters to us here in Ireland.

 

Finally, a small reminder that our Fixed Term (Series 3) fund is live and open for business with a market leading rate over three years. More information available here. With company year ends tending to fall in line with a calendar year, there may be opportunities to fund generously via an advice PRSA for certain client cohorts.

 

As always, if you wish to discuss anything in further detail, please do get in touch.

 

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