Are your investments earning you returns in only one currency?

A lady walks into the bank. As she greets her relationship manager, he can tell that something is worrying her.

He warmly directs her to a comfy room in the Priority centre. He is a good listener. The lady pours her heart out.

Ever since her husband died, she says, managing their different real estate properties is proving to be a difficult task.

“Today it will be one caretaker calling to say a pump somewhere is broken. Tomorrow, it will be another caretaker calling to say a tenant has moved out without paying the monies due. The next day is a call about trespassers into some property that needs money to be rectified. It is a financial headache,” she says.

At her age, these cherished assets are taking too much of her energy, time, and money. So much so that she is no longer able to attend her much-needed medical review overseas. Her adult children are worried.

The relationship manager understands his customer. After all, this is not his first rodeo. The retirement phase can be a challenge to navigate for people whose investments consist only of physical assets. They may not generate a regular income that supports one’s lifestyle while still maintaining the properties.

With a pen in hand, he prompts his client to share her today, tomorrow, and forever needs from a financial standpoint. She wants a hassle-free, regular monthly income to help her maintain her lifestyle. Her face brightens up as she remarks about her infant grandchild. She wants to leave something behind for her future education. Though she worries about the now common inheritance battles in families.

Armed with this, the relationship manager assures her that they now have clear goals to work with.

It is important to balance your investments to have both physical assets and regular cash yielding assets that provide income in a predictable manner. Therefore, he advises his client to liquidate some of these properties and channel the funds into investments that earn regular returns in local and foreign currencies.

Locally that translates to common options such as bonds and money market funds.

Earning regular returns in ‘hard’ currency allows you to comfortably beat inflation; your money is not losing value over time, it is increasing. Certain activities like the medical check-ups abroad like in the client’s case, are facilitated in foreign currency. A good portfolio of international investments gives you returns in foreign currency funds to facilitate these payments.

Therefore, considering her needs for overseas medical costs and legacy planning, we focus on international opportunities. As a global wealth management bank, Standard Chartered connects you to international investment opportunities that earn you returns in US dollars, Euros or Pound sterling, conveniently through your phone. These include US government bonds, USD money market funds, US corporate bonds, offshore mutual funds and more.

When it comes to foreign currency investments, the earlier you start the better. You reap the benefits of compound interest leading to attractive payouts in future. This is beneficial when planning for a child’s future university education abroad. This reminds me of a client who lives by the mantra failing to plan is planning to fail.

Cognizant that his son will be joining university in five years, his goal was to ensure that he had the funds to expose his children to the best foreign education. He diversified his investments to include foreign currency investments. Working with him, we created a portfolio that focused on long-term growth rather than monthly income.

While having a round of golf with him, it was refreshing to hear that the young man who was barely a teenager not too long ago, had started his pilot course in South Africa, paid for by the seed his parents planted in foreign currency investments.

Kenya is experiencing the first most significant generational wealth transfer. Across the country, Kenyans are inheriting land, property, and money from their loved ones. From media reports one can easily tell that it is a painful process leading to legal battles pitting loved ones against each other.

At Standard Chartered, we understand that everybody at one point wants to leave behind something good for their descendants that can easily be passed on to them without any issues. Not only do these foreign currency investment solutions provide good returns today, but they continue to earn for your loved ones when you are no longer there and can easily be transferred.

The testimonials shared are one of many instances where affluent Kenyans tapped into the insights for foreign currency investments. A means to earn returns that help you beat inflation, maintain your lifestyle, educate your children and leave something behind for them.

The question to ask yourself is: why are you earning returns in only one currency?

By using our experience and international presence operating in the world’s most dynamic markets, we are a renowned wealth management bank. Standard Chartered clients are supported by relationship managers who are certified by the Chartered Institute for Securities & Investment (CISI) and are backed by a team of investment specialists.

Through our global centres of excellence in the world’s financial hubs like Jersey, United Arab Emirates, Singapore and Hong Kong, you can take hold of global investment opportunities at a tap of a finger from your home or office.

Paul Njoki, CFA, is the Head of Affluent Banking & Wealth Management Products, Kenya & East Africa at Standard Chartered.