TRANSFERTA K E A G LO BA L V I E W

IT’S BECOMING HOMEU K - B O R N E X PAT S L I V I N G I N T H E E U

A N D M O R E . . .

HOPES OF A NATIONW H I C H F O O T B A L L C O A C H

R E P R E S E N T S T H E B E S T VA L U E ?

E U R O P E A N C I T I E S W I T H T H EM O S T ( A N D L E A S T ) S U N S H I N E

HERE COMES THE SUN

SUMMER2016

03

Welcome.

Currency transfers aren’t just about moneyThey’re about stories. Whether you’re finally buying that place overseas you’ve always dreamt of, or unlocking a new market for your business.

Start your story today at worldfirst.com

If your story matters to you, it matters to us.

Whilst everyone is studying the form guide and trying to find the lesser-spotted dark-horse in the pack of 24, we take a different look at the tournament and ask; which coach represents the best value for money based on the population they represent? We think our analysis might make you think differently about Roy Hodgson too. We couldn’t overlook the referendum completely though for fear of appearing slapdash and so, with 1.2 million Brits currently living in the EU, Jeremy Cook, our Chief Economist, takes a look at what could happen if the UKs expats were to find themselves ‘Brexpats’ come June, 24th. There’s also a little something for the sun-worshippers and budding property developers as we look at some of the hottest spots in Europe, literally as well as metaphorically. Scouting trip to Holland anyone? Whatever this summer holds for you, enjoy it.

In this, our summer edition, we celebrate all things European because, after all, this is a big summer in Europe. With all the talk of that referendum, it’d be quite easy to forget that one of the most open international football tournaments in living memory will kick-off in France in June – and that most of the home nations are represented...

4/7 8/9 10/11

18/1914/1512/13

HOPES OF A NATION

IF THE UK VOTES TOBREXIT, WILL THAT MAKE

ME A BREXPAT?

IT ’S BECOMING HOME HERE COMES THE SUN

NETHERLANDS REVEALEDAS EUROPE’S TOP

BUY-TO-LET HOTSPOT

5 REASONS WHY YOU NEEDA SPECIALIST FOR YOUR

INTERNATIONAL TRANSFERS

05

1984 was a tumultuous year. In no particular

order, it featured: a rancorous and divisive

strike (the miners), a royal birth (Prince Henry

of Wales), the first televised nine-dart checkout

in history (John Lowe), a Winter Olympics

gold (Torvill & Dean) and the first recording

of the most successful charity single of all time

(Band Aid’s ‘Do They Know It’s Christmas’). It

was also the last time that football’s European

Championships were held in France (which,

incidentally, they won).

Whilst perhaps not all eyes will be on France

this summer, more people than ever will be

tuning in from the British Isles as, for the

first time, Wales, Northern Ireland and the

Republic of Ireland will all join England at the

tournament proper. And with the tournament

wide open, and Leicester City having already

proved that resources are no guarantee of

success, who would bet against a surprise

winner from these shores?

Now clearly resources should matter. After

all, England will go with one of the best

prepared, highest-paid squads in tournament

history. And in Roy Hodgson, they will also

be organised and lead by one of the best

remunerated coaches in the tournament, a man

with a salary that looks like the weekly jackpot

in the National Lottery. But, as any investor

will tell you; novices look at cost, experienced

professionals measure value.

So, that’s exactly what we’ve done.

We’ve looked at which coach represents the best value for money based on the cost per head of the population they represent and the cost per point achieved during the most recent qualifying campaign.

Got it? Good. We think the results are at least

quite interesting.

THEHOPESOF A

NATIONThe Euros are coming and this summer 25 men will take their

teams to France carrying not just the hopes of their nations but some well-stocked wallets and a raft of expensive luggage too. Whilst everyone else debates who will win, Matt James asks:

which coach represents the best value?

£

£

€

€ X

07The most valuable coach per headof the population they represent

M O N E Y TA L K S

C O A C H S A L A R Y ( € )

PAY P E R H E A D O F T H E P O P U L AT I O N ( € )

PAY P E R P O I N T D U R I N G Q U A L I F Y I N G ( € )

A R E S U L T S B U S I N E S S

The most valuable coach per pointachieved during qualifying*

* EXCLUDES DIDIER DESCHAMPS AS FRANCE, AS THE HOST NATION, DID NOT NEED TO QUALIFY.SOURCE: CRUNCHY SPORTS (WWW.CRUNCHYSPORTS.COM) + WIKIPEDIA

6,000,000 6,000,000

5,000,000 5,000,000

4,000,000 4,000,000C O A C H S A L A R Y ( € )

3,000,000 3,000,000

2,000,000 2,000,000

1,000,000 1,000,000

0

0

0.5

1

1.5

2

0

€0

€50,000

€100,000

€150,000

€200,000

€250,000

It’s becoming home,it’s becoming home...There are more than a million UK-born expats currently living in the EU. Renny Popoola takes a look at the “exchange rates” of people between countries and finds out who ended up where.

It goes without saying that the outcome of the EU referendum on June, 23rd will matter to

lots of people but perhaps none more so than the 1.2 million Brits who currently call one

or other of the EU member states home. In the event of a Brexit, some are speculating

that these UK nationals could wake up on June, 24th and find themselves ‘Brexpats’ –

though no-one is quite sure what that would actually mean.

Data published by ONS shows that the UKs EU expats are scattered across the continent

and whilst the majority reside in old favourites like Spain, Ireland and France, there are

more than 5,000 in each of the Czech Republic, Slovakia and Finland. Interestingly, the

‘human exchange’ with Finland nets out very neatly indeed; there are 7,000 Finland-born

residents now living in the UK and 7,000 UK-born residents now living in Finland.

Across the EU there are 4 countries where the number of UK-born expats currently living

overseas is greater than the number of EU-born residents now living here, these are:

Spain (-180,000), France (-8,000), Cyprus (-10,000) and Luxembourg (-6,000).

SOURCE: OFFICE FOR NATIONAL STATISTICS (WWW.ONS.GOV.UK)

U K - B O R NI N T H E E U

T O TA L1 , 2 1 7 , 5 0 0

18,000P O RT U G A L

18,000G R E E C E

12,000M A LTA

41,000C Y P R U S

255,000I R E L A N D

50,000N E T H E R L A N D S

19,000D E N M A R K

309,000S PA I N

185,000F R A N C E

103,000G E R M A N Y

25,000N O R WAY

35,000P O L A N D

3,000L I T H U A N I A

1,000L AT V I A

500E S T O N I A

3,000R O M A N I A

7,000H U N G A RY

5,000S L O VA K I A

5,000B U L G A R I A

7,000L U X E M B O U R G

7,000F I N L A N D

11,000A U S T R I A

5,000S L O V E N I A

5,000C Z E C H R E P.27,000

B E L G I U M

ITA LY 65,000

09

HERE COMES THE SUNWhilst it’s a truth universally acknowledged that no-one chooses

Blighty for the weather, where should a sun-seeking would-be expat look for a lot more sun and a little less drizzle? Edd Hardy

packs the factor-30 and spends a while staring at the sun.

The UK has one of the highest expat rates in the world and one of the main reasons that so many people leave these shores to setup home overseas is simple; the weather. In a World First survey of 1,000 people who have been there and done it, 60% said that the most attractive thing about a move abroad was an improvement in weather.

Using data from a range of national meteorological agencies, we’ve pulled together a list of the sunniest cities in Europe to help guide you in your research. Whilst the Maltese capital of Valetta tops our list, the list makes disappointing reading for UK cities like London, Glasgow, Manchester and Birmingham.

TOTA

L H

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RS

OF

SU

NS

HIN

E P

ER

AN

NU

M

THE BOTTOM 10 – AIN’T NO SUNSHINE...THE TOP 20 – HERE COMES THE SUN...

DA

ILY

AV

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AG

E

3,500 3,500

3,000 3,000

2,500 2,500

2,000 2,000

1,500 1,500

1,000 1,000

500 500

0 0

VALE

TTA

, M

ALT

A

MA

RSEI

LLE,

FRA

NC

E

LISB

ON

, PO

RTU

GA

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ATH

ENS,

GRE

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MA

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D,

SPA

IN

MO

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CO

, M

ON

AC

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E, F

RAN

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TIRA

NA

, A

LBA

NIA

BARC

ELO

NA

, SP

AIN

POD

GO

RIC

A,

MO

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NEG

RO

NA

PLES

, IT

ALY

SKO

PJE,

MA

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ON

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ESSA

, U

KRA

INE

CH

ISN

AU

, M

OLD

OVA

PRIS

TIN

A,

KO

SOV

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ON

-DO

N,

RUSS

IA

BELG

RAD

E, S

ERBI

A

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, RO

MA

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A,

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ARI

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L, T

URK

EY

7 7

8 8

9 9

6 6

5 5

4 4

3 3

2 2

1 1

0 0

ZURI

CH

, SW

ITZE

RLA

ND

HA

MBU

RG,

GER

MA

NY

BRU

SSEL

S, B

ELG

IUM

DU

BLIN

, IR

ELA

ND

MA

NC

HES

TER,

UK

LON

DO

N,

UK

BIRM

ING

HA

M,

UK

REYK

JAV

IK,

ICEL

AN

D

GLA

SGO

W,

UK

VALE

TTA

, M

ALT

A

10

TOTA

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OF

SU

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HIN

E P

ER

AN

NU

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DA

ILY

AV

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AG

E

SOURCE: CURRENT RESULTS (WWW.CURRENTRESULTS.COM)

Whilst there is very little consensus about what a Brexit might mean for the 1.2 million UK expats living in the EU, World First’s Chief Economist, Jeremy Cook, gives his view

on life after June should our expats become Brexpats.

I F T H E U K V O T E S T O B R E X I T,

W I L L T H AT M A K E M EA B R E X PAT ?

F I R S T T H I N G S F I R S T, H O W L I K E L Y I S I T T H AT T H E U K W I L L V O T E T O L E AV E T H E E U R O P E A N U N I O N ?

It depends on who you listen to! At the moment the bookies odds are pointing to a 75% probability of the UK remaining a member of the EU and so a 25% chance of a Brexit. The opinion polls are a lot tighter than this but most have the Remain camp in a lead of around of anywhere between 3-9% of the vote.

It is difficult to tell just how much the markets are pricing a Brexit into the price of the pound but we would estimate that traders and investors are marking up a 40% chance of the referendum ending in a vote to Leave the EU. It is very much all to play for!

I L I V E I N T H E E U B U T O U T S I D E T H E U K , A M I A B L E T O V O T E ?

As it stands at the time of writing, expats who left the UK up to 15 years ago will be able to vote in the referendum. Although the vote will count towards your last constituency here in the UK, the vote is a simple majority vote.

W O U L D A B R E X I T A F F E C T M Y A B I L I T Y T O W O R K I N T H E E U O R A C C E S S E S S E N T I A L S E R V I C E S S U C H A S H E A L T H C A R E O R S C H O O L S ?

As it stands at the moment, this is the greatest uncertainty for Brits living abroad. The one certainty is that there would be no guarantee of a transfer of current rights and abilities should the UK vote to leave the European Union.

France has threatened to withdraw its healthcare provisions for British expats should the referendum result in the UK leaving the EU. Indeed the Cabinet Office warned in its initial report on the impact of a Brexit that “there would be no requirement under EU law for these rights to be maintained if the UK left the EU. Should an agreement be reached to maintain these rights, the expectation must be that this would have to be reciprocated for EU citizens in the UK.”

Brits who wish to study in Europe may also be looking at higher costs and more red tape. Much like it is in the UK currently, students from outside the EU have to pay much larger fees for courses than those students from within the Union.

The ability to move around the EU for work is a fundamental core right of the Union and Brits will continue to benefit from a high standard of education and the use of English as the de facto language of business whether we leave or not. Countries outside the EU but who maintain trade ties have found that they have to allow EU workers into their jobs markets in exchange for access to the single market.

I ’ V E G O T A P E N S I O N I N T H E U K . S H O U L D I B E W O R R I E D A B O U T W H AT W I L L H A P P E N T O T H AT ?

If you are paid the state pension and live in the EU then you will have benefited a lot more than those who live in Australia or the US as your pension will have been increased in line with inflation or the ‘triple lock’. It is unclear how this would change if the UK left the EU but this government has been very keen to protect pension payments.

While the pension amount may not change, the value of that pension could easily and definitively fall should we see a fall in the value of the pound as the markets react to Brexit.

W H AT D O Y O U T H I N K W O U L D H A P P E N T O E X C H A N G E R AT E S I F A B R E X I T C A M E T O PA S S ?

In a word, volatility. Currencies don’t do well in the face of politics or uncertain outcomes. The greatest mover of the pound in 2015 was the general election, as it was in 2010. Through 2014 it was the Scottish referendum. The referendum on EU membership has precedent from our initial vote to join in 1975 but there is no precedent for a country as large, politically or economically, as the UK leaving a supranational body such as the EU.

It is our base case scenario that the UK votes to remain in the EU. However, in the event of a vote to Leave we think that forecasts of a 10-15% devaluation in the initial weeks after are probable. Of course, the fallout from such a move would be global and we would expect central banks in the US, Europe and Japan as well as the Bank of England to react by cutting interest rates, thereby weakening their own currencies, in a bid to stimulate demand. Make no mistake, the pound would still be the biggest loser in the short term however.

Correct as at 3rd June 2016 In this document World First may comment on the potential political outcome of the UK referendum on EU membership. World First is not taking a political position and this document and the information and opinion contained herein are not intended to promote or procure, or otherwise be in connection with promoting or procuring, a particular outcome from the question asked within the UK referendum.

13

13

GOING DUTCH! Netherlands revealed as Europe’s

top buy-to-let hotspotWith a new stamp-duty levy of 3% added to the purchase of second homes from 1st April 2016, many investors will be rethinking their strategies – and

perhaps looking to Europe for better returns? Renny Popoola heads for Europe armed with a passport and a calculator.

Intrepid property investors seeking the most attractive investment returns might be advised to cast their search a little wider – beyond these shores in fact. New research from World First reveals the Netherlands as the best location for buy-to-let investments in the EU. Belgium, Portugal, Hungary, Turkey and Slovakia all look attractive bets too, offering average yields above 6%.

With an average rental yield of 6.57%, the Netherlands is the most lucrative country for buy-to-let investments within the EU. This is mainly due to the relatively low price of buying property in the region with the average one bedroom apartment costing just over £102,000 and a three bedroom house costing under £196,000.

At the other end of the scale, savvy investors might be steering well clear of buy-to-lets in Sweden, France and Italy which offer the lowest returns on buy-to-let investments. Sweden, in particular, has yields lower than 3% (2.88%) due to rental controls and a market that favours tenants. This market climate will deter seasoned buy-to-let landlords looking for a decent return on their investment.

France (3.22%) and Italy (3.55%) – already established hotspots for holiday homes – also have lower rental yields compared to their European neighbours and whilst they may make a great retirement or summer home for sun-seekers, they may not be ideal locations for buy-to-let investors.

Edward Hardy, Market Analyst at World First, is clear that while there are attractive returns to be had around the EU, smart investors can also help to maximise their returns by getting their timing right. He explains:

“With the UK languishing ninth from bottom for buy-to-let yields in the EU, many proper ty investors will be wise to look elsewhere to get more from their investments. New stamp duty tax measures for second home owners will also have an impact on yields so it is likely we will see an increase in foreign proper ty investments. If investors do decide to buy abroad, timing is also critical. Our research reveals that fluctuating currency movements can add up to 20% to the price of a property abroad. Fluctuations in the last year alone have reduced the price of properties in Turkey by 20.8% for UK buyers but increased the prices of countries in the Eurozone by 6%.”

Source: research conducted by World First UK. All property prices and rental figures retrieved from Numbeo Cost of Living Tracker, April 2016. Numbeo is the world’s largest database of user contributed data about cities and countries worldwide.

15

15

NETHER LANDS ( € )

C O U N T RY AV E R A G E R E N TA L Y I E L D

SPA IN ( € )

6 . 5 7 %

4 . 9 6

6 . 4 7 %

6 . 2 9 %

6 . 2 1 %

6 . 1 3 %

6 . 0 7 %

5 . 9 9 %

5 . 9 0 %

5 . 4 1 %

5 . 3 4 %

5 . 1 6 %

5 . 0 7 %

5 . 0 6 %

4 . 9 8 %

BE LG IUM (€ )

PORTUGAL ( € )

HUNGARY (HUF )

TURKEY ( T RY )

S LOVAK IA ( € )

BU LGAR IA ( BGN)

MALTA ( € )

CYPRUS ( € )

I R E LAND (€ )

DENMARK (DKK )

LATV IA ( € )

ROMANIA ( RON)

POLAND ( P LN )

4 . 6 9 %

4 . 5 1 %

4 . 4 8 %

4 . 4 3 %

4 . 3 1 %

4 . 2 8 %

4 . 2 3 %

4 . 2 1 %

4 . 0 9 %

3 . 8 9 %

3 . 5 8 %

3 . 5 5 %

3 . 2 2 %

2 . 8 8 %

CZECH REPUB L IC ( € )

GREECE ( € )

LUXEMBOURG (€ )

L I THUAN IA ( € )

F IN LAND (€ )

UK ( £ )

GERMANY (€ )

ES TON IA ( € )

S LOVEN IA ( € )

AUSTR IA (DKK )

CROAT IA ( € )

I TA LY ( € )

F RANCE ( € )

SWEDEN (€ )

C O U N T RY AV E R A G E R E N TA L Y I E L D

SOURCE: NUMBEO (WWW.NUMBEO.COM)

AV E R A G E R E N TA L Y I E L D S A R O U N D E U R O P E

E X P E R T C U R R E N C Y T I P S F O R E X PAT S :

5 reasons why you need a specialist for your international transfers

If there’s one thing that we’ve learned from the EU Referendum, it’s that currency markets don’t like political uncertainty and that’s one good reason why expats

need a currency specialist on their side for international transfers. Matt James explains what an international payments expert can do for you.

1. A S P E C I A L I S T C U R R E N C Y P R O V I D E R C A N H E L P Y O U A C C E S S B E T T E R E X C H A N G E R AT E S

2.W O R L D F I R S T W O N ’ T C H A R G E F E E S F O R P R I VAT E C L I E N T S

There’s a revolution underway in financial services and end-users, clients, customers – whatever you want to call them – are the main beneficiaries. Specialist providers of services traditionally offered by banks, such asforeign exchange, and international payments, are helping to make things cheaper, faster and more transparent. Take World First ’s approach to international money transfer as an example. Independent research shows that someone buying £10,000 worth of euros with World First could get as much as 3% more than they might do with their bank. And that ’s the sort of saving that you can really appreciate.

At World First, we understand that no-one likes unnecessary transfer fees – and that ’s why we never apply fees to international transfers for private clients. We make money by taking the rate we buy our currency at and simply adding a small percentage to the rate we then quote you. This is known as the spread and we will always be clear about the spread we offer you before you make your transfer (and we’re confident you’ ll like it!).

3.S E T U P E A S Y, R E G U L A R I N T E R N AT I O N A L T R A N S F E R S A N DR AT E A L E R T S

4.F I N D P E A C E O F M I N D W I T H A F O R WA R D C O N T R A C T

5.AT W O R L D F I R S T O U T S TA N D I N GC U S T O M E R S E R V I C E C O M E S A S S TA N D A R D

Lots of our private clients use our services to pay bills or keep up with commitments they have overseas on a regular basis, like paying a mortgage or supporting a child studying abroad. We can help you to setup regular payments so that you know that you are keeping up with your commitments. And, if you have a particular rate in mind, we can help you setup a rate alert or even a firm order so that you never miss that target rate again.

The currency markets are some of the fastest-moving and most unpredictable financial markets in the world, and that can make planning a bit tricky. However, with a forward contract you can lock in a rate, even if you aren’t actually ready to make a transfer. You can lock for up to three years in advance so that you’ ll know exactly how much you’ ll get when you’re ready to transfer. You might need to pay an initial deposit, but this will be taken off the balance at the end of the contract. It ’s worth pointing out that if the rates move against you, you may need to top up the deposit but your dealer will explain everything in simple, plain English before you book your forward.

Our clients are our number one priority and we treat every client as if they were our only one. Jonathan and Nick, our founders, started the business because they thought people and businesses were being let down by the main banks and that emphasis on outstanding customer service is as important to us today as it was back in 2004. Call us and a real person will always answer within three rings – no robots or confusing automated menus here. And don’t just take our word for it; you can read our Feefo ratings and reviews here.

“Independent research shows that someone buying

£10,000 worth of euros with World First would get

3% more than they typically would with a bank”

Contact World First to see how much you could save on your international payments.

Call 020 3393 6020 or go to worldfirst.com

19

*CALCULATED FROM EXCHANGE RATES AND FEES

OBTAINED USING MYSTERY SHOP DATA FROM THE

FXCOMPARED INTERNATIONAL MONEY TRANSFER INDEX

(IMTI)™ COLLECTED ON THE 15TH MARCH 2016, BASED

ON SENDING A TRANSFER OF £10,000 IN EUROS AND

SHOWS THE MAXIMUM SAVING (EXCLUDING FEES)

WHICH COULD BE OBTAINED BY USING WORLD FIRST

RATHER THAN OTHER HIGH STREET BANKS.

1917

Currency transfers aren’t just about moneyThey’re about stories. Whether you’re finally buying that place overseas you’ve always dreamt of, or unlocking a new market for your business.

If your story matters to you, it matters to us.

Start your story today at worldfirst.com