Diversifying warchest into other currencies

[WordIsBond]

Good point. I'm just thinking though, risk of Barclays (who provide the account) vs sterling undergoing another precipitous fall?

Sterling only has a really precipitous fall if Corbyn wins. A hung parliament would hurt, too, but not that much. The risk, IMO, is much greater in foreign currencies. If BoJo wins a majority, his deal passes, and we see sterling strengthen significantly. Cable goes to perhaps 1.45, maybe even higher.

[edison]

I haven't done it specifically for my ltd company warchest but I have done it in a slightly different way for other savings.

I have my own SIPP pension and ISA and had the foresight (luck) to diversify by buying shares in multiple currencies about 6-7 years ago. E.g. I bought shares in Apple and Disney (US dollars), BMW (Euros) and UBS Bank (Swiss francs) amongst others.

Overall, it seems to have worked out well and made up for some underperforming sterling denominated investments.

If you're planning to move from the UK you should take professional advice though as the currency conversion fees could be hefty. For large sums (e.g. selling a property), I would have thought you could get fairly close to a commercial exchange rate.

[SuperLooper]

Good point. I'm just thinking though, risk of Barclays (who provide the account) vs sterling undergoing another precipitous fall?

I'm very confident that my money is safe with Transferwise. You're obviously aware of the potential risks, and have given it some thought, so if it works for you...

[zerosum]

Transferwise Borderless account allows you to transfer money in either direction. Note that it is not FSCS-protected, though, so you may want to think carefully about risk before stashing your warchest in it. From an accounting perspective it's just another bank account.

Good point. I'm just thinking though, risk of Barclays (who provide the account) vs sterling undergoing another precipitous fall?

[SuperLooper]

I'll ask my accountant about this, but I'm curious if anyone has diversified a large-ish warchest into other currencies than sterling? I recently opened a Transferwise Borderless euro account (in the company name) to receive payments from a new client abroad. Presumably it should be possible to also transfer some sterling from the company account that way? Or could this be classed as a director's loan/dividend?

In the not too distant future I'm planning to move permanently from the UK. So having lots of sterling isn't ideal. Not to mention the probability of devaluations from Brexit and related shenanigans.

Transferwise Borderless account allows you to transfer money in either direction. Note that it is not FSCS-protected, though, so you may want to think carefully about risk before stashing your warchest in it. From an accounting perspective it's just another bank account.

I maintain a small balance (couple of $k) in my USD Borderless account, to make it easier to handle expenses when I'm travelling to the USA, but I wouldn't keep any larger amount in there long-term.

[zerosum]

I'll ask my accountant about this, but I'm curious if anyone has diversified a large-ish warchest into other currencies than sterling? I recently opened a Transferwise Borderless euro account (in the company name) to receive payments from a new client abroad. Presumably it should be possible to also transfer some sterling from the company account that way? Or could this be classed as a director's loan/dividend?

In the not too distant future I'm planning to move permanently from the UK. So having lots of sterling isn't ideal. Not to mention the probability of devaluations from Brexit and related shenanigans.