QROPS update 9th September 2011 Pension drawdown & QROPS and QNUPS

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 income drawdown, flexible pensions or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximise the Pension drawdown, 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, income drawdown now including flexible pensions, a QROPS and QNUPS (Qualifying non UK Pension schemes).

IN THE UK

• Bank of England holds rates at 0.5% off the back of concerns over the strength of the

economic recovery. The minutes from this meeting released in two weeks will

provide the voting behind the decisions and see how close we were to seeing

another £50bn in the Quantitative Easing pot.

• Some investors are caught having to cover short positions after betting for

more QE.

• GBP/USD rallies to a high of 1.6080 after falling to a low of 1.5912.

• The OECD expects 0.3% growth in the UK in the last three months of 2011.

• GBP makes gains of over 1% against the Euro as the ECB’s speech fails to

inspire the single currency.

• UK Producer Price Index shows a mixed bag this morning, input prices fall

but output prices rise, the pound continues yesterday’s gains.

ELSEWHERE

• US exports hit a record high in July, but USD suffers at the hands of the

Pound.

• The trade gap in the United States falls 13.1% to $44.8bn.

• ECB interest rate remains on hold at 1.5% as EUR/USD drops by 1% and

were more dovish than expected, causing the euro to weaken across the board.

Signs of “strong vigilance” have disappeared and some experts suggest a cut

of 50bps could be on the cards at the next meeting. This would have a

dramatic negative on euro strength.

• Norwegian Finance Minister expresses concerns about recent Swiss National

Bank intervention and subsequent CHF weakening.

• Initial & Continuing jobless claims from the US come in worse than expected,

adding to the Dollar’s woes.

• German CPI released this morning shows annual inflation has remained at

2.4% although analysts were expecting a slight fall to 2.3%.

• Yesterday evening President Obama $447bn package to boost jobs in the US

DATA TO LOOK OUT FOR

• A fairly quiet day of the data front, CB Leading Indicators is released in the

UK at 10.00am

• Canadian Employment Figures are released at 12.00pmm with Housing Starts

released at 1.15pm

• Perhaps the highlight of the next 24hrs is England facing Argentina in their

first game of the Rugby World Cup tomorrow at 9.30am

Gerard Associates Ltd advises UK residents, expats and people considering living abroad on the technical and currency options available for Pensions, pension income drawdown, flexible 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.