Performance

QROPS Performance

“We can use a secure managed US Dollar Account for clients that has attained a 34% per year annualised performance”*

We can make bespoke QROPS pension solutions which are tailored to each client’s needs. Each client’s situation will differ and we have clients from all over the world who have all different type of pension schemes with different pension pot sizes and the tax position varies depending on the various Double Taxation Treaties between where your pension is parked and where your pension is paid into.

For example, you may transfer your pension from the UK to Gibraltar, but be taxed in your resident country such as Japan. Your tax position will depend on the Double Taxation Agreements that are in place.

We can move your pension into different currencies, for example, you can leave you pension in GBP or move to US Dollars, EUR, Singapore Dollars, Hong Kong Dollars or hold a basket of different currencies.

US Dollar is Still King

You can read more here about the international use of the US Dollar

65% of world trade is still conducted in US Dollars and at this moment in time, US Dollar is still king, despite the EUR making some in roads and the Chinese currency, the Yuan or Remnimbi becoming more convertible. But, we see this as a long way off.

Furthermore, most countries around the world hold US treasuries and many countries are pegged against the US Dollar. The Hong Kong Dollar, for instance, has been pegged to the US Dollar for 31 years.

The East Carribbean Dollar has been pegged to the US Dollar at 37c to the US Dollar since 2011. Antigua and Barbuda, Dominca, Grenada, Monserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines and Anguilla all use the East Carribean Dollar pegged to the US Dollar. In fact, the British Virgin Islands only uses the US Dollar.

Panama, Ecuador, El Salvador, East Timor, the US Pacific Islands including Palau, the Federated States of Micronesia, the Marshall Islands, the British Virgin Islands, Turks & Caicos Islands and the Dutch Antilles all use the US Dollar.

Many Latin American currencies are pegged to the US Dollar or when their currency collapses, quickly go to US Dollars. The Dollar is commonly accepted in Peru and Uruguay as well as Mexico and the Canadian border. Go to countries in third world countries in Asia and Africa and they only accept US Dollars. In fact, go to Burma or Cambodia and they only accept crisp US Dollar notes.

US Dollar Managed Account

We have paired with an investment management company, Hudson James Investment Management to bring you an actively managed US Dollar account which you can transfer your pension monies into.

It offers a very high degree of protection. Up to $250,000 in cash and $500,000 in equities or bonds are covered by the SIPC (Securities Investor Protection Corporation) in the USA. Money is wired via Citibank in NYC and only US Exchange Traded Funds (ETFs) are used. The funds are regulated by the SEC, FSA, FCA, FINRA, NYSE and a number of other regulatory bodies.

The account is traded on the Interactive Brokers platform which has $4bn under management.

You can see the backtested data below. The account is now live and is in positive territory for the year.

We believe this is the safest strategy for pensions as it protects from stock market crashes. Please see below that in 2008, the’SMART ETF’ strategy would have moved to safety and made over 50%.

managed-usd-account

*backtested over the last 10 years

You can see more frequently asked questions about the actively managed ETF strategy here.