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Q3 Annuity Currency Preview

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2nd/3rd Quarter

Currency Comparison

Currency Conversion Feb 28 Rate* May 23 Rate* Change
EUR to USD 1.059996 1.078706 0.01871
GBP to USD 1.206939 1.24155 0.034611
AUD to USD 0.673395 0.662796 -0.010599
CHF to USD 1.066262 1.110698 0.04436
JPT to USD 0.007334 0.007218 -0.000116
CAD to USD 0.73542 0.740376 0.004956

 

Source: OANDA Historic Rates: https://www.oanda.com/

3rd Quarter Annuity/Renewal

Currency Overview

3rd quarter currency rates for most major jurisdictions should be only nominally higher than comparable Q2 currency rates.*

Clients invoiced in USD for Euros or British Pounds can expect to pay slightly more than Q2, but the Japanese Yen and some other jurisdictions will be cheaper. See slide 3 for more detail.

Bottom line: Overall Q3 currency costs for major jurisdictions shouldn’t be substantially higher than their 2nd quarter equivalents. Significant quarter-to-quarter currency increases should be a red flag.

*Rates discussed here are exclusive of vendor currency premiums, assume a constant premium between Q2 and Q3 and assume no significant, negative global events before invoices ship.

2nd/3rd Quarter

Making It Real

Hypothetical Portfolio Distributed Across Major Jurisdiction
Your Portfolio Mix will impact your cost

PTO Fees Cost on Feb 28 Cost on May 23 Difference % Change
250k EUR 264,999 269,677 +4,678 1.77%
250k GBP 301,735 310,388 +8,653 2.87%
250k AUD 168,349 165,699 -2,650 -1.57%
250k CHF 266,566 277,675 +11,109 4.17%
2.5M JPY 183,350 180,450 -2,900 -1.58%
250K CAD 183,855 185,094 +1,239 0.67%
Total $1,368,854 $1,388,983 +$20,129 +1.47%

 

Costs discussed here are exclusive of vendor currency premiums

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