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Pound rallies as Remain gains momentum

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Sterling rose 1.6 per cent to $1.46 against the US dollar in one of its biggest rallies in a decade.

The surge follows a series of polls over the weekend that show a swing back towards the UK voting to remain in the EU at this Thursday’s referendum.

According to the FT poll of polls, leave and remain are now neck and neck at 44 per cent each.

Several polls in weekend newspapers showed Remain edging ahead, including The Observer and The Mail on Sunday.

The rise in sterling was the highest since a 1.9 per cent gain in 15 October 2009, according to the FT.

Schroders head of multi manager Marcus Brookes last week said substantial weakness has been priced into sterling since March, when it stood at $1.3, compared to $1.58 in June 2015.

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Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.

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Case study: administration — managing group life schemes

Our client leads the global market in high-tech electronics manufacturing and digital media. The trustees of the company’s final salary pension scheme insure death-in-service lump sum and dependants’ pension death benefits for active employees, as well as dependants’ pension benefits for deferred members (those who have left service).

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Holding my breath, keeping my fingers (and toes) crossed and stroking my lucky rabbit’s foot in the hope that the vote to Remain gains a substantial majority.

    The campaign has been marked by absolute rubbish being spewed by both sides in the hope of swaying the public. Facts, logic and intellectual rigour seem to have been completely lacking. Hardly surprising when you remember that at root democracy is nothing more than pandering to the lowest common denominator.

    Ask yourself what personal advantage do the remain people envisage? We know Gove is a for Brexit as revenge for the failure of his father’s business and Boris is just out for Boris. Even his family are solidly remain and bearing in mind his background (father an MEP and living for several years in Brussels) Boris has made hypocrisy into an art form.

    Then we have loonies like Farage, bleating about immigration and producing a poster with Syrian refugees. Hey Nige – did you flunk geography. Syria isn’t in Europe. Seeing newspaper and TV coverage it is also the case that those trudging across the Balkans, trying to get into Greece and crossing the Med are not Europeans either. So let’s have a little logic please.

    As for true Europeans, if you examine the statistics they are (on average) better educated that the average in the UK – so they could actually be of benefit. When figures are spouted about those immigrants on benefits no mention is made of their country of origin. I will bet that the majority of those are also not from the EU.

    The NHS is another favourite topic of the Brexit brigade. Odd then isn’t it that Dr Mark Porter – Head of the NHS – has said that Brexit claims are farcical.

    Trade. What a load of nonsense – does Germany have a problem?

    We will have a better place in the world if we retain our seat at the table with other Europeans. The days when we were a world player on our own have long since passed. Just hark back to the 1060’s and 1970 when we largely ran thing entirely ourselves – into the ground. Our prosperity (such as it is) seems to be pretty closely correlated to our full membership of the EU. If only we could embrace the idea wholeheartedly and stopped whinging all the time we might actually find ourselves a major voice and player in the European family.

  2. Julian Stevens 21st June 2016 at 1:59 pm

    Switzerland is more prosperous than GB and ascribes this very largely to the fact that it ISN’T part of the EU.

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